Foreign Direct Investment and Export Decision Relationship in the Large Turkish Firms

Journal of Applied Finance & Banking, vol.2, no.4, 2012, 167-184

18 Pages Posted: 6 Sep 2012

See all articles by Gonca Atici

Gonca Atici

Istanbul University

Guner Gursoy

Istanbul Kemerburgaz University

Date Written: August 31, 2012

Abstract

Foreign direct investment (FDI) attracts more appeal than ever for Turkey with a high current account deficit. In firm level, incoming FDI has effects on various factors in which we mainly focus on export decision. In this respect, we explore large Turkish firms in order to reveal the relationship between foreign ownership and decision to export. The data of the top 500 Turkish manufacturing firms is gathered from the Istanbul Chamber of Industry for the period of 1993-2009. We have used probit model to analyze the effect of FDI on the export decision with 6842 observations in total. Findings lead us to conclude that high foreign ownership has a positive effect on firm’s decision to export.

Keywords: Foreign direct investment, Foreign ownership, Multinational enterprises, Export decision

JEL Classification: F10, F14, L60

Suggested Citation

Atici, Gonca and Gursoy, Guner, Foreign Direct Investment and Export Decision Relationship in the Large Turkish Firms (August 31, 2012). Journal of Applied Finance & Banking, vol.2, no.4, 2012, 167-184, Available at SSRN: https://ssrn.com/abstract=2142419

Gonca Atici (Contact Author)

Istanbul University ( email )

Istanbul Business School
Avcilar Campus
Istanbul, 34322
Turkey

Guner Gursoy

Istanbul Kemerburgaz University ( email )

Mahmutbey Dilmenler cad No 26
Bagcilar
Istanbul
Turkey

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