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- W4387405831 abstract "ABSTRACTThis study examines the factors that affect Türkiye’s outward foreign direct investment (TODI) in European Union (EU) countries across quantiles using a panel quantile regression to understand the factors that affect TODI in EU countries with the most and least direct investment from Türkiye. We document that determinants of TODI in EU countries show significant discrepancies across quantiles. Mainly, we find that the relationship between the political stability (PS) level in EU countries and TODI is positive and also stable across quantiles. We also see a strong positive and monotonically declining relationship between Türkiye’s trade exports (EXP) and TODI. On the other hand, we do find that host country market size is negatively related to TODI with a declining slope across quantiles while labour resource endowments are positively related with a small variance across quantile. Overall, we provide policymakers with further information about the growing level of TODI in EU countries. Mainly, we recommend policy makers to make effective use of the relevant trade facilitation clauses in the EU customs union, expand the scale of Türkiye’s trade exports to EU countries, deepen political relations, and strengthen reciprocal political trust.KEYWORDS: TürkiyeForeign direct investmentquantile regressioninfluencing factors, political stabilityJEL CLASSIFICATION: E22F21 Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 The Republic of Türkiye changed its official name from The Republic of Turkey on May 26, 2022, in a request submitted to the Secretary-General by the country’s Minister of Foreign Affairs (https://www.un.org/en/about-us/member-states/turkiye).2 In 2022, Türkiye was the 7th biggest trade partner of the EU and total trade volume surpassed USD 218 billion. (See: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/turkiye_en)3 For a detailed discussion of acquisitions by Turkish MNEs, see: Szigetvári (Citation2020).4 Statistics from the Central Bank of Türkiye.5 For example, among the studies that examined the determinants of TODI: n = 240 for Heavilin and Songur (Citation2020), n = 140 for Aybar (Citation2016), and n = 107 for Anıl et al. Citation2011).6 Bulgaria, Romania, Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan, and Russia.7 See http://www.turkstat.gov.tr for detailed trade statistics.8 Our number of periods, which is twenty-one, is similar to following studies that use panel quantile regression method: Deng et al. (Citation2022) - sixteen periods (2003–2018); Benli (Citation2016) – ten periods (2003–2012); Chowdhury et al. (Citation2021)- sixteen periods (2001–2016); Ansari and Sensarma (Citation2019)- twenty three periods (1995–2017); Rao, et al. (Citation2023)- eight periods (2015–2022).9 https://www.tcmb.gov.tr/10 For example, n = 240 for Heavilin and Songur (Citation2020), n = 140 for Aybar (Citation2016), and n = 107 for Anıl et al. Citation2011)..11 BDSI is a powerful test proposed by Brock (Citation1987) and designed by Broock et al. (Citation1996). The BDS test is a non-parametric test with the null hypothesis that the series in question are i.i.d against an unspecified alternative.12 UK left in EU on January 31, 2020 (https://www.consilium.europa.eu/en/policies/eu-relations-with-the-united-kingdom/the-eu-uk-withdrawal-agreement/timeline-eu-uk-withdrawal-agreement/). Our results are qualitatively similar even if we exclude the UK from the sample for the period after they exited.13 See: https://ec.europa.eu/social/main.jsp?catId=457&langId=en" @default.
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- W4387405831 date "2023-10-05" @default.
- W4387405831 modified "2023-10-08" @default.
- W4387405831 title "The relevance of political stability and exports on Türkiye’s outward direct investment in the European Union: panel quantile regression approach" @default.
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- W4387405831 doi "https://doi.org/10.1080/00036846.2023.2266607" @default.
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