Direct investments between Turkey and Germany - Locations, Impacts and Risks for Companies in and Investing from Lower-Saxony
During the last decade, Turkey has evolved into a fast-growing business-location with ties to Germany increasing via foreign direct investments (FDI). On the one hand, Germany is the largest (foreign) investor in Turkey. On the other hand, a growing number of Turkish stakeholders are getting involved as investors in Germany. This is of great relevance for both national economies as FDI not only shows important income- and employment effects but can simultaneously contribute to a permanent technology- and knowledge transfer and thus contribute to regional development. Present conflicts that Turkey is facing (such as the islamist- and left-wing extremist terrorism, the Kurdish conflict, and war in Syria and Iraq) as well as the current relationship-crisis between Germany and Turkey are bringing light to the increasing risk of German-Turkish investments. With a focus on Lower-Saxony this research project deals on the one hand with the patterns of FDI between Germany and Turkey and their impact and on the other hand with strategic reactions of the investors on political and economic risks. The aim of the project is not just to analyze the direct investment motives, streams and patterns between Turkey and Germany with their impacts on each stakeholder, but also to understand the significance of risks and their influence on business strategies. Elaborating this further, both a theoretic-conceptual contribution to the scientific discourse about Global Production Networks should be made, as well as recommendations compiled, which would enable specific investment grants in both countries. The project is based on a triangulation analysis of secondary data and the analysis of quantitative and qualitative primary data; as such extensive standardized company surveys and qualitative interviews are to be carried out in both countries.
- WP1: Characterization of the FDI streams and positions
- WP2: Identification of spatial FDI-patterns
- WP3: Analysis of the influence of political and economic risks on investment behavior
- WP4: Deduction of recommendations on possible actions for politics and economics
- WP5: Further development of the Global Producion Network approach