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Race for Foreign Direct Investment: Turkey vs. Poland

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  • Yi Jiang
  • Wei Shen

Abstract

Comparing foreign direct investment (FDI) in Turkey and Poland, this paper explores location choices and organizational forms of FDI in emerging economies. We adopt transaction cost economics and institution-based view to investigate the relationships between location, entry mode, and ownership structure. We validate the significance of EU accession as a determinant of FDI and show that a politically stable environment attracts FDI, but the sheer size of a market does not attract FDI. Our findings suggest that different organizational forms of FDI are favored in different institutional environments.

Suggested Citation

  • Yi Jiang & Wei Shen, 2013. "Race for Foreign Direct Investment: Turkey vs. Poland," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 2, October.
    • Handle: RePEc:bjz:ajisjr:567
    DOI: 10.5901/ajis.2013.v2n11p129
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