Locational Preferences of FDI Firms in Turkey: A Detailed Examination of Regional Determinants

Abstract

Within the last decade, foreign direct investment (FDI) research studies have attracted the attention of scholars in the fields of international business and economics. Previous FDI studies primarily focused on sectoral or geographical distribution and were concerned with economic analyses. In Turkey, the number of empirical studies examining location-specific factors has remained relatively low. This study is based on a sample of 90 companies that were surveyed in metropolitan areas in Turkey in 2006. Descriptive analysis and t-test statistical analysis techniques have been used in the analysis of the data obtained from the questionnaire. This one-sample t-test has been performed to determine whether the mean rating of a sample is significantly different from the population mean. According to the results of t-test, a determination has been made of the most important factors in location preference of foreign investment firms.