The Effects of Entrepreneurship, Country Fragility, Human Development, Fixed Capital Investments and Globalization on Foreign Direct Investments in Türkiye

Abstract

Underdeveloped and developing countries seek solutions to major problems they encounter in the path of sustainable economic growth and development, such as lack of capital, technology, qualified manpower and infrastructure, employment creation and foreign trade deficit. Multinational companies (MNCs), on the other hand, have problems with raw materials, cheap labor, shrinking market share and profit maximization, tariffs and quotas etc. trying to overcome obstacles. One of the prominent methods in overcoming these problems is Foreign Direct Investment (FDI). From past to present, FDI has played an important role in the development processes of many countries. Developed countries that want to maintain their level of development have also participated in the race to attract FDI from underdeveloped and developing countries that are trying to achieve the sustainable development goal and rise to the level of developed countries. In this study, first of all, the theoretical framework of FDI is discussed. In this context, the reasons for FDI decisions and demands in terms of countries and MNCs, the entry methods of FDIs, the factors that determine FDI decisions, and criticisms of FDI are emphasized; in Turkey, which subsequently failed to achieve the desired level of FDI inflows; The effects of entrepreneurship, country fragility, human development, fixed capital investments and globalization factors on FDI inflows to Turkey were investigated. As a result of the regression analysis made with annual data between the years 2000-2020 in Turkey; positive developments in entrepreneurship, human development and fixed capital investments have positive FDI inflows; It was concluded that the fragility of the country and globalization had a negative effect on it.