Foreign Capital Investments and Economic Crises in Turkey

International Journal of Social Sciences and Humanity Studies, Vol. 3, No. 1, 2011

13 Pages Posted: 26 Nov 2012

See all articles by Mustafa Öztürk

Mustafa Öztürk

International Trade

Osman Nuri Aras

Nile University of Nigeria

Date Written: December 1, 2011

Abstract

1970’s financial liberalization has been followed by the liberalization of commercial markets in the process of globalization. Liberalization of financial markets has caused the acceleration of capital flows and the increase of their volume. Capital that flows to developing countries suffering from saving gaps has positive effects on the economies when they entered into these countries and lead to destabilizations on their economies when they went out. The influences of capital flows, especially the ones of speculative capital, have been observed in the financial crises erupted in international level since the 1990s. By performing the financial liberalization, Turkey has tried to resolve the capital gap problem with the entrance of foreign capital since 1989. Unfortunately, by increasing its vulnerabilities, liberalization caused Turkish economy, which has macroeconomic weaknesses; to become open to destabilizing effects of capital flows and global financial crises. The aim of this study is to determine the effects of capital flows on Turkish Economy.

Keywords: International Investment, Long-Term Capital Movements, Short Term Capital Movements, Financial Crisis

JEL Classification: F21, F3, G01, G11, G15

Suggested Citation

Öztürk, Mustafa and Aras, Osman Nuri, Foreign Capital Investments and Economic Crises in Turkey (December 1, 2011). International Journal of Social Sciences and Humanity Studies, Vol. 3, No. 1, 2011. Available at SSRN: https://ssrn.com/abstract=2180730

Mustafa Öztürk

International Trade

Istanbul
Turkey

Osman Nuri Aras (Contact Author)

Nile University of Nigeria ( email )

Abuja
Nigeria

Register to save articles to
your library

Register

Paper statistics

Downloads
58
Abstract Views
547
rank
368,641
PlumX Metrics