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Determinants of foreign direct investment in Turkey
Author(s) -
Tatoglu Ekrem,
Glaister Keith W.
Publication year - 1998
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.4270400306
Subject(s) - foreign direct investment , sample (material) , joint venture , investment (military) , economics , logit , econometrics , business , macroeconomics , political science , commerce , chemistry , chromatography , politics , law
The motives and characteristics of western MNEs' foreign direct investment (FDI) in Turkey are considered in terms of Dunning's ownership, location, internalization (OLI) paradigm for a sample of 98 firms. A parsimonious set of motives is identified by means of factor analysis. Binomial logit regression models are used to test a set of hypotheses concerning the relative importance of FDI motives and the sample characteristics. The findings are that the relative importance of the OLI factors vary most with the industry of the investment, to a moderate extent with the size of the investment and to a modest extent with the ownership pattern of the investment (wholly owned subsidiary or joint venture). © 1998 John Wiley & Sons, Inc.