Özet:

Gaining momentum from the 1980s, the Foreign Direct Investments (FDI) are of great importance for developed economies as well as emerging economies and economies in transition. Foreign direct investment inflows bring in technology, national income increase and new manufacturing opportunities. Besides, foreign direct investments play a very significant role in economic development. In addition to this; developing countries subsidise their external debt by means of foreign direct investments. In this study foreign direct investment flows to Turkey and Hungary are reviewed, Performance and Potential indices are addressed, foreign direct investment performances of both countries are compared by means of these indices and Turkey and Hungary’s potential to attract foreign direct investment in the global scale are explained. It was concluded that Turkey’s and Hungary’s performance to attract foreign direct investment is not at the desired level, however in recent years a better environment to make business was prepared for foreign investors. In general, it can be stated that foreign direct investment performance and potential of Hungary is better than Turkey’s. However, both Hungary and Turkey have to support and provide incentives for R&D projects in order to attract fixed capital investments which are one the most important constituents of direct investments.

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