The determinants of Turkish outward foreign direct investment

Abstract

The general theory of Foreign Direct Investment (FDI) has been built on the experience of developed countries' investors. Therefore, we have an extensive literature about developed economies' firm behaviors. Some researchers have started investigating that why, how and when developing countries' firms engage outward FDI. All these studies have shown that, the FDI determinants of firms from newly industrialized economies (NIEs) are different from the FDI determinants of firms from developed economies. This study investigates the entry mode and location choice determinants of Turkish outward direct investments, which are operating in Central Asia, Russia and Balkan Countries, over the period of 1989 to 2005. We find that these investments are associated with high levels economic and political risks in and cultural proximity and lack of ownership advantages. The main purpose of this study is to provide some new evidences for these NIE's outward FDI literature. Also we aim to discuss born international concept, instead of born global.