# Sánchez-Martín, Escribano and de Arce, 2014.

“How regional integration and transnational energy networks have boosted FDI in Turkey”

|Onaran|2009|Changes in the wage share in<br>the manufacturing in Mexico,<br>Turkey and the Republic of<br>Korea|Quantitative (3<br>countries)|Other|Consequence<br>s of FDI|FDI inflows have not brought the expected improvement on<br>worker's real wages|
|---|---|---|---|---|---|---|
|Cetin and Taban|2009|impact of FDI on trade with the<br>EU|Qualitative<br>(multivariable)|Other|Consequence<br>s of FDI|FDI contributes positively to foreign trade. Japanese and EU<br>FDI are export-oriented and thus contribute to the rapid growth<br>of Turkish exports, while US FDI is anti-export-oriented and<br>thus leads to decreases in Turkish exports|
|Bilgili et al|2012|Non linear determinants of FDI<br>in Turkey|Quantitative (single<br>country,Markov)|Macroeconomic<br>and institutional|Determinants|FDI is positively correlated with economic growth in Turkey,<br>decreasing country risk and expansion in exports, whereas<br>labor costs, imports and currency depreciation expectations<br>have a negative impact on FDI in Turkey. The relationship of<br>energycosts with FDI shows a significant non-linearity.|
||||Political economy|Mixed||Late accession to the EU will cause that Turkey continues to<br>fall behind Central and Eastern Europe countries. Policy<br>recommendations: privatize, keep improving human capital,|
|Loewendahl, H. B. and<br>E. Ertugal-Loewendahl|2000|EU's enlargement and Turkey's<br>position in attractingFDI|analysis + Micro<br>Survey|macroeconomic +<br>Location + Policy|Performance/<br>Regional|infrastructures, teleco and develop an active FDI attraction<br>agency|
|Dutz et al|2005|Turkey's Foreign Direct<br>Investment Challenges:<br>Competition, Rule of Law and<br>the EU Accession|Political economy<br>analysis (+3 case<br>studies)|Macro economic<br>determinants +<br>Policy|Performance/<br>Regional|Lags behind in its energy infrastructure, its level of<br>computerization, and the availability of credit for the private<br>sector. EU accession process should provide Turkey with<br>significant FDI inflows helping to ease rule of law and<br>competition constraints|
|Zaman|2005|Impact of accession<br>negotiations on FDI and trade|Political economy<br>analysis|Not clear|Consequence<br>s of FDI|Predicts boost in FDI inflows in the aftermath of accession<br>negotiations. Caveat: subjective analysis|
|Sayek|2007|Determinants of FDI in Turkey,<br>and the impact of EU accession|Quantitative (cross<br>country)|Location specific<br>factors +<br>Macroeconomic|Determinants|The author attributes the recent increase in FDI inflows mainly<br>to integration prospects. The reduction in inflation does not<br>seem to haveplayed a major role in this late success.|
|Gungor and Binatli|2010|Determinants of FDI in Easter<br>Europe and Turkey, and the<br>impact of EU accession|Quantitative (cross<br>country)|Macroeconomic|Determinants|Analyze a panel data consisting of eleven countries involved in<br>EU accession, including Turkey, and conclude that progress in<br>thisprocess result in a significant increase of FDI inflows.|
|Uckun and Doerr|2010|Turkish reformspost 2001|Political economy<br>analysis|Macroeconomic +<br>policy|Other<br>(reforms)|Both reforms in the investment framework and availability of<br>global financial funds during 2003-2008 facilitated FDI upsurge<br>in Turkey|
|||Determinants of FDI in Turkey,|Quantitative (cross|Macroeconomic +||Esiyok (2011) finds that FDI in Turkey is mainly horizontal. FDI<br>flows to Turkey respond positively to the EU accession<br>process, as well as to bilateral trade treaties with third|
|Esiyok|2011|<br>a capital-knowledge approach|<br>country)|Policy|Determinants|<br>countries.|
|||FDI in Turkey, unexploited|Quantitative (cross<br>country, gravity|GDP, distance,||GDP per capita and distance, but not human capital<br>availability, are significant determinants of FDI. Turkey has an|
|Bosco|2012|potential|model)|EU|Determinants|unexploitedpotential in terms of FDI stock of 200%to 1000%.|

Source: authors’ elaboration 35