Browsing by Author "Kahraman, Oya"

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Politik istikrarın doğrudan yabancı sermaye yatırımları üzerindeki etkisi: Türkiye örneği
(2023) Kahraman, Oya; Doru, Ömer
As the globalization process that started in the 1970s gained momentum in the 1980s, most of the barriers between countries were removed and the barriers to foreign direct investments were also reduced. In this process, the realization of the importance of foreign direct investments has led to the revival and increasing trend of these investments. Foreign direct investments offer many advantages to both the investor and the recipient. It provides advantages such as employment, transfer of technology and management know-how, increase in the level of national production, and most importantly, capital to the economy of the host country receiving the investment, while providing advantages such as natural resources, raw materials, cheap labor and expanding the market area to the investor. Developing countries that lack capital or want to benefit from other advantages of FDI have become competitive for FDI inflows. Foreign direct investors, on the other hand, make decisions with the aim of making high profits and seek an environment of political stability along with economic stability in the countries where they intend to invest in order to minimize their risks. Multinational companies make investment decisions by taking into account the political stability factors as well as the macroeconomic indicators of the countries they plan to invest in. The existence of political stability in a country is an indicator of a preferable investment environment for foreign direct investments as it means that social and political peace is ensured. When this situation is evaluated for Turkey, Turkey is among the countries with a very low domestic saving tendency and capital shortage for large investments. Therefore, there is a need to meet the capital shortage from outside. For this purpose, foreign direct investments, which are more permanent than portfolio investments, are tried to be attracted to the country. In this study, in order to determine the effect of political stability on foreign direct investment in Turkey, regression analysis was applied using time series data of gross domestic product, openness to foreign trade, exchange rate and political stability variables for the period 1994-2021. Johansen cointegration test was performed for the existence of the relationship between FDI and political stability variables and the coefficients of the variables were obtained by FMOLS, DOLS and CRR methods. As a result of the study, it is found that there is a significant and positive relationship between FDI and political stability in Turkey.