TURKEY’S FDI PERFORMANCE:

Foreign Direct Investment (FDI) is a particularly important element for accelerated growth, technical innovation and enterprise restructuring of countries, as well as capital account relief. The determinants of FDI are thought to be macroeconomic conditions, political climate, institutional factors, labor costs, location, human capital, infrastructure, host country’s trade openness and the prospect of European Union (EU) membership for the countries in the EU accession process. Since the beginning of their transition, Central East European Countries have attracted a considerable amount of FDI. Turkey, on the other hand, has performed quite poor in attracting FDI, despite her renowned economic potential and geographic advantages. However, in late 2005 and 2006 first half, we have seen that the FDI inflow into the country has increased significantly. There is no doubt that, opening of negotiations on October 3rd 2005 has a crucial role in this increase. It is very likely that this latest surge in FDI will procee