How regional integration and transnational energy networks have boosted FDI in Turkey (and may cease to do so): A case study, how geo-political alliances and regional networks matter
Entity
UAM. Departamento de Economía AplicadaPublisher
World Bank Group. Macroeconomics and Fiscal Management DepartmentDate
2014-07Serie/Num.
Policy Research Working Paper. 6970Subjects
foreign direct investment; regional integration; Turkey; energy corridors; EconomíaAbstract
Turkey has historically struggled to attract foreign investors.
This paper argues that not only macroeconomic and
political stability, but also regional integration explains
the upsurge in foreign direct investment observed since
2005. The analysis draws from a qualitative framework. It
discusses how, contrary to the Customs Union Treaty for
industrial products with the European Union, the official
start of the European Union’s accession to negotiations in
2005 encompassed a wide set of reforms in several chapters
directly or indirectly affecting the business climate. The
reforms helped to enhance foreign direct investment attraction
in Turkey. However, it seems that the global economic
slowdown starting in 2009 and increasing Euro-skepticism
have already started to erode this effect. Only large foreign
investment in the energy sector observed in 2009–13,
explained by the energy security strategy of the European
Union and the privatization agenda, has prevented the
collapse of foreign direct investment inflows to Turkey
Files in this item
Google Scholar:Sánchez Martín, Miguel Eduardo
-
Escribano Francés, Gonzalo
-
Arce Borda, Rafael de
This item appears in the following Collection(s)
Related items
Showing items related by title, author, creator and subject.
-
The determinants of foreign direct investment in developing economies
Sánchez Martín, Miguel Eduardo
2014-09-16 -
Trade and foreign direct investment in the Middle East and North Africa Region: Adressing the role of institutions and political instability
Kamel, Esmat Moustafa
2017-09-13