Abstract:

The aim of this study is to identify the factors that influence local governments’ investments. In this framework, 6 different criteria were considered to affect local governments referred to in the literary survey’s investment decisions (population increase, GDP per capita, location, geological impact, political risk and financial risk). On the other hand, it has been used the foolish DEMATEL method to this specified goal. As a result, the population growth and the GDP per capita figure have been determined as criteria that influence local governments’ investment choices. In addition to these findings, geological effects are highlighted as the criterion that affects much, and the population growth is highlighted as the criterion that affects much. Given these findings, it is clear that local governments are investing mainly in populated and more regionally developed sections. From this information, it is possible to say that local governments should not ignore the areas that have a small population and are economically undeveloped. This will contribute to the economic development of the country. Keywords: Local Governments, Investment Selection, Closed DEMATEL JEL Classification: H72, R11