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Foreign Direct Investment in Emerging Markets: The Case of Turkey
Thesis title in Czech:
Thesis title in English: Foreign Direct Investment in Emerging Markets: The Case of Turkey
English key words: FDI, Turkey, Rule of Law, Trade cost
Academic year of topic announcement: 2012/2013
Type of assignment: diploma thesis
Thesis language: angličtina
Department: Institute of Economic Studies (23-IES)
Supervisor: doc. PhDr. Adam Geršl, Ph.D.
Author: hidden - assigned by the advisor
Date of registration: 19.06.2013
Date of assignment: 19.06.2013
Date and time of defence: 24.06.2014 00:00
Venue of defence: ies
Date of electronic submission:16.05.2014
Date of proceeded defence: 24.06.2014
Reviewers: Ayaz Zeynalov, M.A., Ph.D.
URKUND check:
I am going to estimate determinants of inward FDI in Turkey and try to forecast it for near future. Turkey’s rapidly growing economy attracts investors and it is thus relevant to analyse the determinants of inward FDI, looking more in detail into the issue of whether Turkey can keep its attractiveness going forward. For my research, I will use official data (mostly reports) from official websites of the government of Turkey (like websites of Ministry of Economy, Undersecretariat of Treasury, Invest in Turkey and others). The methodology of my research will follow existing literature.

There is some literature on FDI in Turkey, such as Kayam (2009) or Central Bank of Turkey (2013). In my research, I will follow Esiyok (2010) who covers the main determinants of FDI inflows in Turkey that were not covered by previous authors. However, my research will provide additional value added to Esiyok (2010), namely: (i) he used the data for FDI flows from OECD countries until 2007, while I will use the data for FDI flows not only from OECD countries but also for third countries until 2011; (ii) I am going to use the reports from the government of Turkey (as opposed to the Esiyok’s paper that used OECD reports) as I consider it to be more accurate for the research; (iii) I will include for the research the data since 2001 untill 2011 as opposed to Esiyok, who used data since 1982 to 2007, because most of FDI inflows into Turkey are concentrated between 2001-2011. This is the period when political stability was established in Turkey and new government started many projects to improve Turkey’s economic and institutional structure.

Preliminary outline:
FDI in Turkey (Background)
Literature Review
Conceptual framework and Methodology
Empirical Results
Forecasting FDI in Turkey

Brooks, C. (2008). Introductory Econometrics for Finance. New York: Cambridge University Press.
Esiyok, B. (2010, June). Determinants of foreign direct investment in Turkey: a panel study approach. Retrieved June 2013, from EconPapers:
Ministry of Economy. (2012, April). Foreign Direct Investment in Turkey. Retrieved June 2013, from Republic of TUrkey: Ministry of Economy:
Neumayer, E. a. (2005). Do bilateral investment treaties increase foreign direct investment to developing countries? Retrieved June 2013, from The London school of Economics and Political Science:
Saime S. Kayam, M. H. (2009, March). Determinants of Turkish FDI Abroad. Retrieved June 2013, from Loyola University Chicago:
UNCTAD. (2012). Investment Country Profiles: Turkey. Retrieved June 2013, from UNCTAD:
Central bank of Turkey (2013), Foreign direct investment. Retrieved from Central bank of Turkey:
Index Mundi (2011), Turkey - Education expenditure. Retrieved July 2013, from Index Mundi:
World Bank (2012), Country Data Report for Turkey, Retrieved July 2013, from World Bank:
Preliminary scope of work in English
This paper studies determinants of FDI in Turkey using panel data analyses. The results of the study show that political stability, education level, rule of law, and trade cost have significant impact on FDI inflow in Turkey while similarity in economy size of home and host country (Turkey) has not. The effect of the trade cost and rule of law was surprising but it gave a clue to new research area. It was concluded that next studies of FDI determinants in Turkey must be conducted at firms’ level to better understand the behavior of foreign direct investments in the country.
The content of the work looks as follows:
1. Introduction
2. FDI in Turkey and Turkish Economy
3. Literature Review
4. Conceptual framework and methodology
5. Data description
6. Empirical results
7. Conclusion
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