Abstract:

In recent years, foreign direct investment to countries has increased under the infl uence of globalization. The countries that understand the importance of foreign capital in their development, implement various incentives and constitute special units in order to attract especially foreign direct investment to their countries. Developped economies have been the most attractive countries for foreign direct investment, while at the same time exporting capital. 70 percent of total foreign direct investment in the world goes to developped economies. In the last decade, it has been observed that there are considerable incereases in the foreign direct investment to the developping countries particularly such as China, Hong Kong, Singapore, Mexico and Brazil. Turkey also tries a variety of implementations in order to attract foreign direct investment that is crucial in its developping process. Nevertheless, global crisis has affected the foreign direct investment negatively both in Turkey and in the world. While the foreign direct investment volume to Turkey is 22 billion dollars in 2007, this number declined to 18.1 billion dollars after the impacts of the crisis. Although it is predicted that the foreign direct investment in Turkey will increase after the global crisis, for the return of foreign investment to its old level, it is necessary to evaluate the opportunities that are created by the crisis and to reconstruct the confi dence by additional precautions. In this context, the effects of global fi nancial crisis on the foreign direct investment in Turkey will be analysed in this paper.

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