How Regional Integration and Transnational Energy Networks Have Boosted FDI in Turkey (and May Cease to Do So) : A Case Study--How Geo-Political Alliances and Regional Networks Matter

Turkey has historically struggled to attract foreign investors. This paper argues that not only macroeconomic and political stability, but also regional integration explains the upsurge in foreign direct investment observed since 2005. The analysis draws from a qualitative framework. It discusses how, contrary to the Customs Union Treaty for industrial products with the European Union, the official start of the European Union's accession to negotiations in 2005 encompassed a wide set of reforms in several chapters directly or indirectly affecting the business climate. The reforms helped to enhance foreign direct investment attraction in Turkey. However, it seems that the global economic slowdown starting in 2009 and increasing Euro-skepticism have already started to erode this effect. Only large foreign investment in the energy sector observed in 2009-13, explained by the energy security strategy of the European Union and the privatization agenda, has prevented the collapse of foreign direct investment inflows to Turkey.

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Bibliographic Details
Main Authors: Sanchez Martin, Miguel Eduardo, Escribano Frances, Gonzalo, de Arce Borda, Rafael
Language:English
en_US
Published: World Bank Group, Washington, DC 2014-07
Subjects:ACCESSION NEGOTIATIONS, BALANCE OF PAYMENTS, BALANCE OF PAYMENTS CRISIS, BILATERAL TRADE, BILATERAL TRADE FLOWS, BUSINESS ENVIRONMENT, CAPITAL FLOWS, CAPITAL ACCOUNT LIBERALIZATION, CAPITAL ACCOUNT OPENING, CAPITAL CONTROLS, CAPITAL MARKET, CAPITAL MARKET REFORMS, CAPITAL MARKETS, CAPITAL MOBILITY, CAPITAL MOVEMENTS, CAPITAL OUTFLOWS, COAL, COMMERCIAL POLICY, COMMERCIALIZATION, COMMON MARKET, COMMON CUSTOMS, COMMON CUSTOMS TARIFF, COMMON EXTERNAL TARIFF, COMPETITION LAW, COMPETITION POLICY, COMPUTATIONAL ECONOMICS, CORPORATE GOVERNANCE, COUNTRY OF ORIGIN, CROSS-COUNTRY REGRESSION, CURRENT ACCOUNT DEFICIT, CUSTOM UNION, CUSTOMS, CUSTOMS UNION, CUSTOMS UNION AGREEMENT, CUSTOMS DUTIES, CUSTOMS TARIFF, CUSTOMS UNIONS, DEBT STOCK, DIRECT INVESTMENT, DIRECT INVESTMENT INFLOWS, DOMESTIC INVESTMENT, DOMESTIC MARKET, DOMESTIC ONES, DOMESTIC REFORMS, ECONOMIC COMMUNITY, ECONOMIC COOPERATION, ECONOMIC INTEGRATION, ECONOMIC LIBERALIZATION, EXPORT PERFORMANCE, EXTERNAL TARIFF, FACTOR ANALYSIS, FDI, FOREIGN OWNERSHIP, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FOREIGN CAPITAL, FOREIGN COMPANIES, FOREIGN EXCHANGE, FOREIGN INVESTMENT FLOWS, FOREIGN INVESTOR, FOREIGN TRADE, FOSTERING TRADE, FREE MOVEMENT OF CAPITAL, FREE TRADE AGREEMENT, FREE TRADE AGREEMENTS, FULL CAPITAL MOBILITY, GAS, GLOBAL CAPITAL FLOWS, HOST COUNTRY, HOST ECONOMY, HUMAN CAPITAL, IMPORT QUOTAS, IMPORT TARIFFS, INFORMATION SOCIETY, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTELLECTUAL PROPERTY LAW, INTEREST GROUPS, INTERNAL MARKET, INTERNATIONAL TRADE, INTERNATIONAL INVESTMENT, INTERNATIONAL INVESTORS, INVESTMENT CLIMATE, INVESTMENT FLOWS, INVESTMENT INCENTIVES, INVESTMENT POLICY, INVESTMENT PROTECTION, JOINT VENTURE, KNOWLEDGE THEORY, LIBERALIZED MARKET, MACROECONOMIC STABILITY, MARKET ACCESS, MARKET ORIENTATION, MARKET SIZE, MOVEMENT OF CAPITAL, MULTINATIONAL ENTERPRISES, NEIGHBORING COUNTRIES, OIL, OIL PRICES, OPEN ECONOMY, PETROLEUM GAS, PETROLEUM MARKET, POSITIVE EXTERNALITIES, PROTECTION OF INTELLECTUAL PROPERTY RIGHTS, PROTECTIONIST MEASURES, REGIONAL INTEGRATION, REGIONAL AGREEMENTS, REGIONAL INITIATIVES, REGIONAL INTEGRATION AGREEMENT, REGIONAL INTEGRATION AGREEMENTS, REGIONAL INTEGRATION INITIATIVES, REGIONAL SCIENCE, REGIONALISM, REGULATORY REFORM, SHORT-TERM CAPITAL, SPATIAL ORGANIZATION, STATE OWNED ENTERPRISES, SUBSIDIARIES, TECHNICAL STANDARDS, TECHNOLOGY TRANSFER, TRADE FLOWS, TRADE PREFERENCES, TRADE TREATIES, TRANSNATIONAL CORPORATIONS,
Online Access:http://documents.worldbank.org/curated/en/2014/07/19877174/regional-integration-transnational-energy-networks-boosted-fdi-turkey-may-cease-so-case-study-geo-political-alliances-regional-networks-matter
https://hdl.handle.net/10986/19354
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