Abstract:

While foreign direct investment (FDI) may be a strong source of export incentives in developing countries, its role is still controversial. On the one hand, foreign investment has been suggested to increase exports in developing countries through superior technology and capital, while on the other hand, it is claimed that the role of FDI in encouraging exports depends on the motivations behind this investment. This shows that the nature of the link between FDI and export performance is not clear and should be empirically investigated by country basis. The main purpose of this study is to reveal the effect of foreign direct investments on exports in the case of Turkey.

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