Özet:

Foreign Direct Investments (FDI) are the most important source of international capital, technology, management information and market accessibility. Thus, governments recently assign new provisions and incentives to attract FDI. The purpose of this study is to identify the most important factors that attract FDI. First, a general review of FDI inflows to Turkey is addressed in light of regional and international trend. Second, a review of literature is considered in order to identify determinants of FDI inflows. Third, regression analysis is used to determine the factors that affected FDI inflows to Turkey in 2009 to 2019 period. Results of regression analysis are highly consistent with literature review in which the size of the market and openness of the economy positively affect FDI inflows. Current account deficit and exchange rate are negatively correlated with FDI inflows. On the other hand, regression analysis results revealed that foreign direct investors’ decision to invest in Turkey is not significantly affected by cost of labor, cost of capital and inflation rate.

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