Corruption, FDI, and Trade Freedom Relationship Between Turkey and Latin American Countries

Yıl 2022, Cilt: 24 Sayı: 1, 83 - 109, 31.05.2022

Alexander Camacho Murcia , Özgür Uysal

https://doi.org/10.54838/bilgisosyal.1081905

Cited By: 1

Öz

Foreign Direct Investment (FDI) has been always associated with a high level of trade openness and freedom environment, and with a lower incidence of institutional corruption. Because it is assumed that a high level of international capital mobility makes foreign investors more cautious when there is a fluctuation in political stability and institutional transparency. Most American countries (except Canada and the USA) have been always related to a lack of transparency in their institutional and bureaucratic procedures, which conduct to important levels of corruption and in consequence, to other serious issues such as prominent level of violence, or even the inequality phenomena. This study investigates whether the variables of corruption indices, trade openness and inflation rates have positive or negative effects on FDI between Turkey and American countries. For analyzing this econometric model, it was gathered information from OECD, COMTRADE, TUIK, Heritage Foundation, UNCTAD, and the World Bank Database. The observed data correspond to a decade (2005-2014) and were only taken a sample of 14 American countries.
The empirical results of the present study revealed that there is a positive correlation between the trade openness index and FDI; and, it was found a positive correlation between corruption index, inflation, and FDI. The increase in the corruption index causes a 41% increase in FDI inflow.

Anahtar Kelimeler

Foreign Direct Investment, Trade Freedom, Economic Freedom, Corruption, Institutional Transparency

Türkiye ile Latin Amerika Ülkeleri Arasındaki Yolsuzluk, Doğrudan Yabancı Yatırım ve Ticari Özgürlük İlişkisi

Öz

Doğrudan Yabancı Yatırımlar (DYY), her zaman yüksek düzeyde ticari açıklık ve özgürlük ortamı ile ve daha düşük kurumsal yolsuzluk vakası ile ilişkilendirilmiştir. Çünkü siyasi istikrar ve kurumsal şeffaflıkta bir dalgalanma olduğunda yüksek düzeyde uluslararası sermaye hareketliliğinin, yabancı yatırımcıları daha temkinli hale getirdiği varsayılmaktadır. Çoğu Amerikan ülkesi (Kanada ve ABD hariç), önemli düzeylerde yolsuzluğa yol açan ve sonuçta belirgin şiddet düzeyi ve hatta eşitsizlik olgusu gibi diğer ciddi sorunlara yol açan kurumsal ve bürokratik prosedürlerinde her zaman şeffaflık eksikliği ile ilişkilendirilmiştir. Bu çalışma Türkiye ve Amerika ülkeleri arasında doğrudan yabancı yatırımlar üzerinde yolsuzluk endeksleri, ticari açıklık ve enflasyon oranları değişkenlerinin pozitif veya negatif etkisi olup olmadığını araştırmaktadır. Bu ekonometrik modeli analiz etmek için OECD, COMTRADE, TUIK, Heritage Foundation, UNCTAD ve Dünya Bankası Veritabanı’ndan bilgi toplanmıştır. Gözlemlenen veriler on yıla (2005-2014) tekabül etmektedir ve sadece 14 Amerika ülkesi ve Türkiye'den örneklem alınmıştır.
Mevcut çalışmanın ampirik sonuçları, ticari açıklık endeksi ile DYY arasında pozitif bir korelasyon olduğunu ortaya koymuştur; yolsuzluk endeksi, enflasyon ve DYY arasında pozitif bir ilişki bulunmuştur. Yolsuzluk endeksindeki artış, doğrudan yabancı yatırım girişinde %41'lik bir artışa neden olmaktadır.

Anahtar Kelimeler

Doğrudan Yabancı Yatırım, Ticaret Özgürlüğü, Ekonomik Özgürlük, Yolsuzluk, Kurumsal Şeffaflık

Kaynakça

• Affairs, M. O. (2017, 01 09), Retrieved from https://www.mfa.gov.tr/i_-turkiye_nin-latin-amerika-ve-karayiplere-yonelik-politikasi-ve-bolge-ulkeleri-ile-iliskileri.tr.mfa
• Alvarado, E. A., Iniguez, M., Ponce, P. (2017), "Foreign Direct Investment and Economic Growth in Latin America", Economic Analysis and Policy, 56: 176-187.
• Bengoa, M., & Sanchez-Robles, B. (2003), “Foreign Direct Investment, Economic Freedom and Growth: New Evidence from Latin America”, European Journal of Political Economy, 19: 529–545.
• Bibi, S., Ahmad, S. T., Rashid, H, (2014), "Impact of Trade Openness, FDI, Exchange Rate and Inflation on Economic Growth: A Case Study of Pakistan", International Journal of Accounting and Financial Reporting, 4 (2): 236-257.
• Borensztein, E. D. (1998), "How Does Foreign Direct Investment Affect Economic Growth?", Journal of International Economics, 45: 115– 135.
• Campos, N. (2019), Renegotiations and corruption in Infrastructure: The Odebrecht Case. Padova, Italy: Marco Fanno Working Papers - 230, Universita degli Studi di Padova.
• Canada Gov. (2022, 02 21), Canada-Turkey Relations. Retrieved from Canada Government: https://www.international.gc.ca/country-pays/turkey-turquie/relations.aspx?lang=eng
• Cho, J. (2003), “Foreign Direct Investment: Determinants, Trends in Flows and Promotion Policies". Investment Promotion and Enterprise Development Bulletin for Asia and the Pacific, K. Lakshminarayanan, Ed., no.1, 99-112. Retrieved from http://www.unescap.org/tid/publication/indpub2259.pdf.
• Denisia, V. (2010), "Foreign Direct Investment Theories: an Overview of the Main FDI Theories", European Journal of Interdisciplinary Studies, 2 (2): 1-7.
• Dritsaki, M., & Dritsaki, C. V. (2004), “A Causal Relationship between Trade, Foreign Direct Investment and Economic Growth for Greece. American Journal of Applied Science, 230-235.
• Dunning, J. H. & Rugman, A. M. (1985), "The Influence of Hymer's Dissertation on the Theory of Foreign Direct Investment", The American Economic Review, 75 (2): 228-232. https://www.jstor.org/stable/1805601
• Dunning, J. H. (1993), "Internationalizing Porter's Diamond", MIR: Management International Review, 33: 7-15. https://www.jstor.org/stable/40228187
• Ellis, E. (2009), China in Latin America: The Whats and Wherefores. Colorado, USA: Lynne Rienner Publishers. Godinez, J. &. (2015), Corruption Distance and FDI flows into Latin America'. International Business Review, Edinburgh Research Explorer, 33-42.
• Gould, D. (1987), The Effects of Corruption on Administrative Performance, Illustrations from Developing Countries. Washington, D.C.: World Bank.
• Lavrov, S. (2008, November 07), Russian Ministry of Foreign Affairs. Retrieved from Russian Ministry of Foreign Affairs: https://www.mid.ru/en/search/?q=latin+america&sort=rele&lang=ru&order=desc&count=10
• Le, B., Ngo, T. T. T., Nguyen, N. T. & Nguyen, D. T. (2021), The Relationship between Foreign Direct Investment and Local Economic Growth: A Case Study of Binh Dinh Province, Vietnam. Journal of Asian Finance, Economics and Business, 8 (4): 33-42.
• Leamer, E. E. (1995), The Heckscher-Ohlin model in Theory and Practice. New Jersey, the USA: Princeton University.
• Lily, J., Kogid, M., Mulok, D., Sang, L. T., Asid, R. (2014), “Exchange Rate Movement and Foreign Direct Investment in Asean Economies", Economics Research International, Article ID 320949: 1-10. http://dx.doi.org/10.1155/2014/320949
• Lipsey, R. E. Feenstra, R. C., Hahn, C. H., Hatsopoulos, G. N. (1999), The Role of Foreign Direct Investment in International Capital Flows, NBER Working Paper Series. No. 7094. https://www.nber.org/system/files/chapters/c9801/c9801.pdf
• Love J., L. & Hidalgo F. L. (2000), “Analysing the Determinants of US Direct Investment in Mexico”, Applied Economics, 32: 1259–1267.
• Noorbakhsh, F. P. (2001), "Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence”, World Development, 29: 1593-1610.
• OECD. (2022, 02 22), FDI flows. Retrieved from https://data.oecd.org/: https://data.oecd.org/fdi/fdi-flows.htm Russian MFA. (2009, March), The Foreign Policy and Diplomatic Activities. Moscow: Ministry of Foreign Affairs of Russia. Retrieved from https://www.mid.ru/upload/iblock/f91/THE%20FOREIGN%20POLICY%20AND%20DIPLOMATIC%20ACTIVITIES%20OF%20THE%20RUSSIAN%20FEDERATION%20IN%202008.pdf
• Sanchez-Robles, Blanca and Bengoa-Calvo, Marta, (November 2002), Foreign Direct Investment, Economic Freedom and Growth: New Evidence from Latin-America Universidad de Cantabria, Economics Working Paper No. 4/03, Available at SSRN: https://ssrn.com/abstract=353940 or http://dx.doi.org/10.2139/ssrn.353940
• Smith, A. (1776), An Inquiry Into The Nature and Causes of The Wealth of Nations. London: Edited by Edwin Cannan, Methuen & Co., Ltd., London (Reprint in 1904).
• Tarhan, M. (2022, 2 22), Turkey’s Goal in Its Relations with Latin America is to Deepen Cooperation. Retrieved from aa.con.tr: https://www.aa.com.tr/en/americas/-turkiye-s-goal-in-its-relations-with-latin-america-is-to-deepen-cooperation-/2480067
• Tuman, J. E. (1999), "Explaining Japanese Foreign Investment in Latin America, 1979– 1992", Social Science Quarterly, 80: 539– 555. Tung, S. & Cho S. (2000), The Impact of Tax Incentives on Foreign Direct Investment in China, Journal of International Accounting, Auditing and Taxation. 9 (2): 105-135. https://doi.org/10.1016/S1061-9518(00)00028-8
• Turkey MFA. (2017), Ministry of Foreign Affairs of Turkey. Retrieved from Ministry of Foreign Affairs: https://www.mfa.gov.tr/i_-turkiye_nin-latin-amerika-ve-karayiplere-yonelik-politikasi-ve-bolge-ulkeleri-ile-iliskileri.tr.mfa
• UNCTAD. (2015), World Investment Report. Retrieved from https://unctad.org/topic/investment/world-investment-report
• UNCTAD. (2021, 6 21), Foreign Direct Investment in Latin America Plunges by 45% Amid Pandemic. UNCTAD. Retrieved from Foreign direct investment in Latin America plunges by 45% amid pandemic: https://unctad.org/topic/investment/world-investment-report.
• UNCTADSAT. (2016), United Nations Conference on Trade and Development. Retrieved from UNCTADSAT: http://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=96740
• Uwubanmwen, A. A. (2012), The Determinants and Impacts of Foreign Direct Investment in Nigeria”, International Journal of Business and Management, 7 (24): 67-77.