ALPER, Ali Eren Niğde Üniversitesi - Iktisadi ve Idari Bilimler Fakültesi (İİBF) - Maliye Bölümü, Turkey , ORANSAY, Gürçem Çukurova Üniversitesi - Iktisadi ve Idari Bilimler Fakültesi (İİBF) - İktisat Bölümü, Turkey

AN ANALYSIS ON THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT: COMPARISON OF UPPER MIDDLE INCOME COUNTRIES GROUP AND OECD

36878

The financial markets which had been integrated with each other rapidly after 1980s, has led the capital movements to change directions. While developing countries were trying to make them attractive for getting foreign investments, the developed economies were both exporting capital and attracting FDI.The aim of this study is to separately analyze FDI determinants for 12 upper middle income countries and 22 high income OECD country groups and identify differences between FDI determinants of these two development level country groups. For this aim in this study the results acquired by realizing Factor Analysis (FA) with the annual data between 2005-2013 have been examined within the panel data analysis (feasible generalized least squares method- FGLS). The results showed that, in the upper middle income countries, current account balance and public investments support each other and have positive effect on FDI. On the other hand, GDP has positive and financial development has negative effect on FDI. In the high income OECD countries, infrastructure systems, current account balance, innovation changes, information Technologies, innovation changes and public investments have positive effect on FDI. Also in this country group it has been determined that GDP and population growth have positive and wages have negative effect on FDI.

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Foreign Direct Investment , Push and Pull Factors , Factor Analysis , Panel Data Analysis

Journal Of Economics and Administrative Sciences, Ataturk University

318