Journal of East European Management Studie (JEEMS) is published by IMR Press from Volume 30 Issue 1 (2025). Previous articles were published by another publisher under the CC-BY licence, and they are hosted by IMR Press on imrpress.com as a courtesy and upon agreement.
, Alfredo Jimenez 2,*1 Department of Economics, Istanbul Kultur University, Turkey
2 Department of Business Management, University of Burgos, Spain
Abstract
In this paper we investigate the impact of institutional differences as a determinant of Turkish FDI inflows from OECD economies. We focus on the corruption distance between the home and host countries as a crucial part of institutional quality. Our results confirm that FDI flows are higher when they come from countries with low differences in corruption with Turkey. Conversely, FDI flows are negatively affected when there exists a large difference in corruption between the investing country and Turkey. This is explained by the ability of firms to obtain a higher return from their resources and capabilities in those environments with a similar idiosyncrasy to the one of their home country.
Keywords
- Foreign Direct Investment
- Turkey
- OECD countries
- institutional differences
- corruption
- multinational enterprises (JEL: F21, F23, D73)