Abstract:

Globalization increases the importance of the economic integrations that are formed all around the world One of the most important economic integrations is the European Union that displays a single country organization with their common policies against third parties The main objective of this study is to analyze the effect of membership to a regional economic integration namely the European Union on Foreign Direct Investment FDI inflows in these countries In order to expose the FDI structure of these countries a comparison between FDI potential and performance of countries is conducted The effect of accession to the union is tested by a model and using the test results the effects of a possible membership of a candidate country such as Turkey on FDI inflows is discussed The results of the model that is formed appropriate to the objective of the study show the favorable effects of the economic indicators of the country as well as the membership to the European Union on FDI inflows and this effect becomes apparent as the years of membership to the union increases Key Words: European Union Foreign Direct Investment FDI

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