Journal of Applied Finance & Banking, cilt.2, sa.4, ss.167-184, 2012 (Hakemli Dergi)
Foreign direct investment (FDI) attracts more appeal than ever for Turkey with a
high current account deficit. In firm level, incoming FDI has effects on various
factors in which we mainly focus on export decision. In this respect, we explore
large Turkish firms in order to reveal the relationship between foreign ownership
and decision to export. The data of the top 500 Turkish manufacturing firms is
gathered from the Istanbul Chamber of Industry for the period of 1993-2009. We
have used probit model to analyze the effect of FDI on the export decision with
6842 observations in total. Findings lead us to conclude that high foreign
ownership has a positive effect on firm’s decision to export.