APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY

Foreign direct investment (FDI) plays a pivotal role in economic development. Most important advantages of this are new technology, management ability, marketing ability and modern know-how. However, the literature dealing specifically with the issue of German direct investments in Turkey is fairly...

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Main Authors: Erkan Ilgün, Kasim Tatić
Format: Article
Language:English
Published: Faculty of Economics, University of Tuzla 2012-11-01
Series:Economic Review
Subjects:
Online Access:https://www.er.ef.untz.ba/index.php/er/article/view/169
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author Erkan Ilgün
Kasim Tatić
author_facet Erkan Ilgün
Kasim Tatić
author_sort Erkan Ilgün
collection DOAJ
description Foreign direct investment (FDI) plays a pivotal role in economic development. Most important advantages of this are new technology, management ability, marketing ability and modern know-how. However, the literature dealing specifically with the issue of German direct investments in Turkey is fairly sparse. Regarding this, the purpose of study is not only to explore the main determinants of German FDI inflows in Turkey, but also to increase our understanding of the relationship between FDI and its determinants. The conceptual framework used in this study was firstly designed by Dunning and became known as “The eclectic paradigm of international production". The results of a literature review about the German direct investments made in Turkey and the determinants of FDI related to the market entry are shown in the text. Portfolio investments as well as foreign debt are ignored. When considering market policy, there are numbers of investment motives that are critical for German companies, i. e. management potential and popularity. The entrepreneurs believe in "market potential, dynamics, growth", existing “High-and low-skilled” workers and “Political and economic stability” in Turkey. From the characterization of German direct investments, it is possible to conclude that the transfer of factors that influence competitiveness of German companies is major priority of companies positioned in Turkey. According to survey results, in majority of cases most advanced technology was transferred to Turkey
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spelling doaj-art-21cb1ab4d7eb42ecbe5492f1d8dfabce2025-02-11T00:33:23ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2012-11-01102APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEYErkan Ilgün0Kasim Tatić1International Burch University, Department of ManagementSchool of Economics and Business, University of Sarajevo, Bosnia and Herzegovina Foreign direct investment (FDI) plays a pivotal role in economic development. Most important advantages of this are new technology, management ability, marketing ability and modern know-how. However, the literature dealing specifically with the issue of German direct investments in Turkey is fairly sparse. Regarding this, the purpose of study is not only to explore the main determinants of German FDI inflows in Turkey, but also to increase our understanding of the relationship between FDI and its determinants. The conceptual framework used in this study was firstly designed by Dunning and became known as “The eclectic paradigm of international production". The results of a literature review about the German direct investments made in Turkey and the determinants of FDI related to the market entry are shown in the text. Portfolio investments as well as foreign debt are ignored. When considering market policy, there are numbers of investment motives that are critical for German companies, i. e. management potential and popularity. The entrepreneurs believe in "market potential, dynamics, growth", existing “High-and low-skilled” workers and “Political and economic stability” in Turkey. From the characterization of German direct investments, it is possible to conclude that the transfer of factors that influence competitiveness of German companies is major priority of companies positioned in Turkey. According to survey results, in majority of cases most advanced technology was transferred to Turkey https://www.er.ef.untz.ba/index.php/er/article/view/169FDIOLI-ParadigmTurkey-Germany Relationship
spellingShingle Erkan Ilgün
Kasim Tatić
APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY
Economic Review
FDI
OLI-Paradigm
Turkey-Germany Relationship
title APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY
title_full APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY
title_fullStr APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY
title_full_unstemmed APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY
title_short APPLICATION OF OLI-PARADIGM OF GERMAN FDI INFLOWS IN TURKEY
title_sort application of oli paradigm of german fdi inflows in turkey
topic FDI
OLI-Paradigm
Turkey-Germany Relationship
url https://www.er.ef.untz.ba/index.php/er/article/view/169
work_keys_str_mv AT erkanilgun applicationofoliparadigmofgermanfdiinflowsinturkey
AT kasimtatic applicationofoliparadigmofgermanfdiinflowsinturkey