Open AccessRace for Foreign Direct Investment: Turkey vs. Poland
Author(s) -
Yi Jiang,
Wei Shen
Publication year - 2013
Publication title -
academic journal of interdisciplinary studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.148
H-Index - 5
eISSN - 2281-4612
pISSN - 2281-3993
DOI - 10.5901/ajis.2013.v2n11p129
Subject(s) - foreign direct investment , race (biology) , accession , transaction cost , institution , business , international economics , international trade , economics , political science , european union , law , sociology , finance , gender studies
Comparing foreign direct investment (FDI) in Turkey and Poland, this paper explores location choices and organizational forms of FDI in emerging economies. We adopt transaction cost economics and institution-based view to investigate the relationships between location, entry mode, and ownership structure. We validate the significance of EU accession as a determinant of FDI and show that a politically stable environment attracts FDI, but the sheer size of a market does not attract FDI. Our findings suggest that different organizational forms of FDI are favored in different institutional environments. DOI: 10.5901/ajis.2013.v2n11p129
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