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Turkey's FDI Policy and Chinese Foreign Direct Investments in Turkey

Author

Listed:
  • Nadir Kemal Yilmaz

    (Nadir Kemal Yilmaz is a China Business Analyst and an M&A professional at 3 Seas Capital Partners, Fiskiye Sok. No: 17/4 GOP, 06660, Ankara, Turkey. E-mail: nadirkemal@mac.com)

  • Fang Lee Cooke

    (Fang Lee Cooke is Professor of HRM and Chinese Studies, Manchester Business School, The University of Manchester, Manchester M15 6PB, UK. E-mail: fang.cooke@mbs.ac.uk)

  • Rosita Dellios

    (Rosita Dellios is Associate Professor of International Relations, Bond University, Gold Coast 4229, Queensland, Australia. E-mail: rosita_dellios@bond.edu.au)

Abstract

The Republic of Turkey and the People's Republic of China are two countries with emerging market economies on the eastern and western borders of Eurasia. Turkey, with its notable economic improvement after the 2001 banking crisis and China, with entrenched economic reforms that have promoted the opening of its market to the world, have become attractive for international investors. Both states’ economic liberalization processes led to considerable increase in Foreign Direct Investment (FDI) although the amount of FDI is much higher for China. China, in turn, is likely to become a major investor in the coming years rather than just being an FDI magnet. This article analyses the FDI environment and recent developments in Turkey as well as indications of Chinese investments which are taking place in Turkey. The rapid expansion of the trade volume between Turkey and China, China's increasing foreign exchange reserves and its desire to enter world markets including the European market are all signalling an increase of its investments in Turkey. The implications of Chinese investments for Turkey are also discussed.

Suggested Citation

  • Nadir Kemal Yilmaz & Fang Lee Cooke & Rosita Dellios, 2008. "Turkey's FDI Policy and Chinese Foreign Direct Investments in Turkey," Global Business Review, International Management Institute, vol. 9(1), pages 19-44, June.
    • Handle: RePEc:sae:globus:v:9:y:2008:i:1:p:19-44
    DOI: 10.1177/097215090700900102
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    References listed on IDEAS

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