SECTORAL PERFORMANCE OF FOREIGN DIRECT INVESTMENT ON EMPLOYMENT IN TURKEY

Authors : Yaprak Gülcan

Pages : 265-270

Doi:10.14783/maruoneri.678864

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Publication Date : 2004-06-10

Article Type : Research

Abstract :The relationship between Foreigtı Direct Investment (FDI) and employment has become an important subject for macroeconomic policies and explicitly pronounced as the policy objective at all levels. The aim of this paper is to investigate the quantitative relationship between FDI and the number of jobs created on the sectoral basis in Turkey for the 1980-2002 period. In order to do this first, the job elasticities of the sectors are estimated. Then, the relative performance of the FDI receiving sectors are calculated by forming Relative Average Project Index and Relative Average Job Index. Judging by the estimated elasticity, the potential for job creation seems to be the highest in Services sector (44%), but on the other hand, in terms of RAPI and RAJI, the manufacturing sector has been the most successful. Interestingly, Services sector is relatively more successful in creating jobs than attracting projects for the same period in Turkey.
Keywords : Foreign Direct Investment, Unemployment Multinational Companies, Sectoral Performance