Nigerian Journal of Economic and Social Studies最新文献

{"title":"Trade liberalisation and product structure: the case of the Western Balkans","authors":"Edward Molendowski, Łukasz Klimczak","doi":"10.14706/JECOSS16622","DOIUrl":"https://doi.org/10.14706/JECOSS16622","url":null,"abstract":"Abstract \u0000This paper addresses an important issue of an impact of trade liberalisation on export structure and product concentration, which, according to contemporary findings, have a strong influence on the dynamics of an economic growth. The analysis covers the region of the Western Balkans (WB) in years 1995 – 2013 with an emphasis on Stabilisation and Association Process (SAP) and CEFTA-2006 agreement, which formed the basis for the trade liberalisation in the region. The empirical results provide evidence that is in contrary to the evidence from other countries where trade liberalisation resulted in their deepened specialisation in production and export of raw materials and labour-intensive goods. Moreover, liberalisation processes turned out not to have had much impact on product concentration of the WB’s trade. Finally, substitutability of capital and labour factors in the production process of exported goods was confirmed. \u0000Key words: Western Balkans, international trade, trade","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78378481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina","authors":"Amra Babajić, Meldina Kokorović Jukan","doi":"10.14706/JECOSS16621","DOIUrl":"https://doi.org/10.14706/JECOSS16621","url":null,"abstract":"This paper provides theoretical background and empirical research on state’s role in financial sector development, focusing on state’s role in achieving pro-poor economic growth through its activities in development of the financial sector. \u0000To this end, in the theoretical part of the paper it is explained that pro-poor growth depends on the strong private sector, while at the same time private sector development is dependent on the degree of financial sector development. Defining pro-poor growth as a set of policies aiming to reduce poverty, it is argued that pro-poor growth is dependent on financial sector development both, directly and indirectly. Financial sector development contributes to poverty reduction directly through improvement of the access to financial products/services to the poor, and indirectly through private sector’s better access to financial sources which as a consequence impacts the overall economic growth of the country. By analyzing theoretical approaches, it is shown that government policies and actions in financial sector development might positively impact private sector development, and therefore (indirectly and directly) contributes to pro-poor growth. \u0000The empirical part of the paper discusses the role of the state in financial sector development and its contribution to economic growth and poverty reduction in Bosnia and Herzegovina (BiH), arguing that this growth needs to be pro-poor oriented as BIH is the poorest country in Europe. In order to assess state’s role in financial sector development and its implication to pro-poor growth in BIH, surveys among small and medium enterprises (SMEs) and government representatives were conducted. The aim of the surveys was to analyze the perceptions of private sector participants and of government institution employees perceptions about the government role in development of the financial sector oriented to SMEs. \u0000The research shows significant disagreement between the two surveyed groups about the efforts currently being implemented by BIH government in supporting the private sector through financial sector development. It is concluded that government needs to work more closely with the private sector as well as with the financial sector so as to better identify the private sector needs and then create policies and take actions necessary for the private sector to develop, which would consequently lead to poverty reduction.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73264783","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Personality Characteristics and Emotional Intelligence Levels of Millenials: A Study in Turkish Context","authors":"Guven Ordun, Asli Akun","doi":"10.14706/JECOSS16614","DOIUrl":"https://doi.org/10.14706/JECOSS16614","url":null,"abstract":"IntroductionEmotions can be explained by psysiological changes in the body, cognitions, learning processes, personality, social relations, experiences, psychological conditions, cultural practices, and are grounded in daily life (Strongman, 2003). Emotional intelligence is described as monitoring and evaluating one's own emotions, monitoring and evaluating emotions of others, regulating and using them (Hartel, et al. 2005). Whereas, cognitive intelligence is associated with the factual information about people, things, events, time, and place, emotional intelligence deals with the antecedents and mutual relations between these aspects of life (Terrell & Hughes, 2008). Personality can be defined as distinctive and stable ways of behavior (Ewen, 2010). Emotions and personality are known to be intertwined with each other. Some researches in the field (e.g. Caruso et al., 2002; Ghiabi & Besharat, 2011) have revealed that, there are significant relations between personality dimensions and emotional intelligence dimensions. This study aims to search this relation on millenials. Twenge (2009) discussed that the generation a person belongs to, can be slightly more influence on the person than his/her family. She added that it is essential to recognize the own realities of each and every generation within various contexts (Twenge, 2009). Millenials in Istanbul, Turkey are subjects of this research. However; the findings may be relevant in other cultures's generations within the limitations of specific historical, social, and economic conditions.Theoretical BackgroundAssesment of PersonalityPersonality has been studied thoroughly throughout the years and researchers have stated theories about personality. The psychodynamic perspective explains the effect of the unconscious, below the surface on the structure and development of personality, whereas the humanistic perspective underlines the positive human nature and self-actualizing capability on the structure and development of personality. The trait approach emphasizes the effect of conscious, above the surface and behavior patterns on the structure and development of personality, whereas the behaviorist theory focuses on the effect of environment and learning in shaping personality. Cognitive approach emphasizes the effect of mental processes on the structure and development of personality (Ewen, 2010). Although these approaches have some commonalities in themes such as unconscious, psychopathology, etc., they explain these themes and personality in different ways which may complement each other. In this study the contribution of trait approach to personality and Roger's, one of the well known names of humanistic approach, with his Q-sort test, and the contribution of behaviorist approach with its emphasis of the environment on human behavior, specifically from the cohort's effect on personality characteristics of millenials can be understood. However, the contributions of psychodynamic perspective and co","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91076214","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Improved Business Climate and FDI in the Western Balkans","authors":"R. Osmani","doi":"10.14706/JECOSS16611","DOIUrl":"https://doi.org/10.14706/JECOSS16611","url":null,"abstract":"IntroductionThe complex political and economic transition in the countries of the Western Balkans in the past two decades has been accompanied by numerous economic and political asymmetrical strokes.During this complex process the governments of the countries of the Western Balkans (WB) with the assistance of the IMF and World Bank implemented the economic policies that aimed to achieve macroeconomic stabilization, transformation and privatization of state owned enterprises and to reform the economic system and public institutions.After two decades of implementation of intensive economic policies the countries of the Western Balkan have achieved macroeconomic stabilization but the results in reforming the economy, reforming the public sector and the public institutions are in insufficient level and continue to remain challenges for these countries in the future.In fact, the asymmetric development during the previous system and the low levels of economical growth in the first decade of the transition followed by increasing levels of unemployment, poverty, the large informal sector and fiscal evasion were the main obstacles in implementing deep institutional reforms and establishing a functional market economy in the Western Balkan's (Osmani & Mazllami, 2014).The process of economic and political transition in the Western Balkans due to achieved asymmetric results do not solve in approriate level three main problems of economic transition (Commander, 1991).1) Finding a new balance between private sector and public sector,2) Finding the balance between profits and wages in the private sector, and3) Finding the balance between monetary and fiscal policy within the strategy that aim macroeconomic stabilization and economic development.Three balances realized at transition countries of the Western Balkans are in suboptimal levels as a result of numerous deficits and economic and social problems, lack of voluminous local and foreign investment and significant delays in the implementation of economic and institutional reforms as a result of lack of national political consensus.Delays and poor quality of structural reforms still remain as the major obstacles in attracting foreign investment although as serious progress was made in terms of creating a more favorable environment business largely of formal nature.As a consequence, that indicator \"Ease of Doing Business\" does not include areas such as: the level of corruption, independence of the judiciary, the size of the market, political and economic risk and functionality of public institutions, this indicator does not reflect the full attractiveness of business environement as crutial precondition in attracting foreign direct investment.Despite the fact that Macedonia on the basis of the indicator, Doing Business, in the period 2010-2015 is listed as a leader in the West Balkans, country has realized the lowest level of foreign direct investment in volume and quality compared to the West Balkans and EU c","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77085775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina","authors":"Izet Bajrambašić","doi":"10.14706/JECOSS16612","DOIUrl":"https://doi.org/10.14706/JECOSS16612","url":null,"abstract":"IntroductionDue to the lack of investment funds the economies of many countries are often in unfavorable and seemingly hopeless situations, where incomes are insufficient for necessary new investment, which slows the growth of capital and production and finally results in slowing of the income growth. Such economic situation is very difficult and depressing, and the way out of this situation is not easy and requires adequate knowledge and hard work.One of the possible way-outs is through new investments, which can change and direct a vicious circle of this situation towards the revival and development of the economy and overall society. The question is how to acquire new investments, i.e. how to ensure the necessary funds for this purpose?In this regard, the governments have an important task, especially in providing funds, which is not easy.Public infrastructure in many countries, because of their high value, may be the basis for new investments, because this potential can be exploited so that the existing resources and assets available in the network industries can provide fresh money. This can be achieved by monetization of assets through concessions. The government's funding source of increased importance is the \"monetization\" or insuring the cash flow from existing public assets. Revenues made by the monetization may be used for: new infrastructure funds directly, or for other purposes. On the other hand, this process is a good opportunity for the government to gain the capacity of new technologies, increase production and exports, achieve stability in the energy system, and to avoid possible risks of worn out and technologically obsolete capacities or losses, etc. A new concession management structures, in partnership with the public sector, with an agreed concession fee, receive infrastructure to manage, which in long-term involves: investment, exploitation, maintenance, sale of services and all other that is related to the specific activity and agreement.The process of monetization has to take in account large interests of stakeholders, this is especially true for the public sector, concessionaires, financial institutions and service users. Their interests are different, but they are strongly connected to each other. The implemented project which presented in this paper (page 4.) and experiences of countries show different interests of stakeholders and main reason for 44 Journal of Economic and Social Studies monetization through concessions in network industries. These practical examples of projects and results of research presented in book \"Achievement in Finance of Infrastructure, PFI/PPP\", Izet Bajrambasic, 2004, (chapter: \"Participants and the interest of the participants in the PPP Projects\") give very clear explanation of stakeholders different interests.The interests of the public sector are: new financial resources, continuous provision of public services, faster development of infrastructure and economy, allocation of risks, saf","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79576749","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Role of Monetary Policy as the Foundation of Economic Development in Bosnia and Herzegovina","authors":"M. Živković, Lejla Hodzic","doi":"10.14706/JECOSS16615","DOIUrl":"https://doi.org/10.14706/JECOSS16615","url":null,"abstract":"Abstract: Macroeconomic stabilization of every country depends largely upon the conduct of appropriate economic policy, which comprises both fiscal and monetary policy; therefore, it is of great importance to choose the most adequate and productive ones. Many countries across the board have employed monetary policy in their attempt to ease the consequences of economic crises in the aftermath of global financial meltdown, and in the search for sustainable economic development. This paper was confined to the monetary policy in Bosnia and Herzegovina specifically, and its aim was to address the current Currency Board Regime along with the available monetary policy instruments and to determine whether an opportunity for the improvement of economic growth and consequently economic development lies within it. The importance of Central Bank was stressed out, as it represents the anchor of the monetary system. The paper comprises the analysis of the implemented CBR, its brief history, monetary policy instruments available and its consequences on the economy of BH therefore, it is thought that abandoning the arrangement either by joining the EMU or by making the Central Bank more independent is necessary. \u0000 \u0000Key words: Macroeconomic Stabilization Monetary Policy Instruments;BH Economic Development; Monetary Easing","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90936267","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Contemporary Forms of Supporting Entrepreneurship and Investments on SMEs: The Case of Polog Region in the Republic of Macedonia","authors":"Jeton Mazllami","doi":"10.14706/JECOSS16613","DOIUrl":"https://doi.org/10.14706/JECOSS16613","url":null,"abstract":"The world economy is facing a variety of financial and economic challenges caused by different economic and political crises. Furthermore, the crises have had a negative impact that has been reflected on the macroeconomic indicators of each national economy. In these circumstances the transition economies, especially the Western Balkan countries needed to cope with the ever growing international competition, increasing unemployment, lack of private initiatives and investments, low level of economic growth and development. As a result, the attention is oriented towards SMEs, the importance of SMEs as a key pillar to sustainable growth and competitiveness on national and global market. The focus of this research is the importance of various contemporary forms which support entrepreneurship in order to increase investments, such as: business start-up centres, clusters, business incubators, economic zones and investment funds. The main objective of this research is to determine and measure the relationship between the SMEs from Polog region and contemporary institutions: business development centre (BDC) and technology park (TP) at SEE University, Enterprise Support Agency (ESA) as a private company and economic chamber of Macedonia which support private initiatives and increase their investments. In order to determine the relationship, a survey on SMEs in Polog region is conducted. The methodology used is cross tabulation two-way tables with measures of association based on data analysis from surveys and processed by STATA software. The main finding of this research is the positive impact of BDC, ESA and economic chamber on Polog region SMEs on the increase of their investments. \u0000 \u0000Keywords: Investments, SMEs, Entrepreneurship, BDC, Growth, Economic Development","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83778495","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do Size and Origin Matter? Evidence from the Banking Market of Bosnia and Herzegovina","authors":"Deni Memic, Nedim Memic, Sanela Pasic","doi":"10.14706/JECOSS16616","DOIUrl":"https://doi.org/10.14706/JECOSS16616","url":null,"abstract":"(ProQuest: ... denotes formulae omitted.)Literature ReviewBanking market has been research area of interest in the previous period. Banks and their behaviour are analysed frequently in order to investigate patterns and trends that determine their profitability, efficiency and other financial indicators.The latest financial crisis has significantly affected the banking sector in Bosnia and Herzegovina causing stagnation within the sector, increase of risk costs and consecutively decrease of profitability. Despite of these global financial changes, the results within the sector vary to a great extent from bank to bank. The banking market of Bosnia and Herzegovina is in majority foreign private ownership and is characterized by domination of large foreign banks. It is also highly decentralized as two separate banking markets exist in each of the two constitutional entities, Federation of Bosnia and Herzegovina and Republika Srpska. Banking market of Bosnia and Herzegovina is fairly unexplored area, only an insignificant number of research has been conducted using data from Bosnia and Herzegovina. This research includes prediction credit default in Federation of Bosnia and Herzegovina (Memi. and Rov.anin, 2012) and assessing credit default on the banking market of Bosnia and Herzegovina using several statistical methods (Memi., 2015).Observing such diversified, decentralized and inhomogeneous banking market of Bosnia and Herzegovina arises many unanswered questions: are large banks better than small banks and are foreign owned banks better than locally owned banks? Answering such questions may indicate whether the decisions to transfer most of the Bosnian banking market from the local to foreign ownership, was a quality one. Furthermore, it may indicate whether small or large banks exhibit better performance.The main purpose of this study is to compare and discriminate banks of different size and ownership origin in Bosnia and Herzegovina or in other words, analyse different financial ratios of banks in Bosnia and Herzegovina controlling for bank size and ownership origin.To our knowledge no major research has been conducted and published on the banking market of Bosnia and Herzegovina apart from the study by Memi. and .kalji.-Memi. (2013) that assessed the efficiency scores for each bank which served as a basis for further comparisons between the banks in the period between 2008 and 2010. In this research banks were also compared based on their size and location. The results of this research have shown that individual bank efficiency varies 62 Journal of Economic and Social Studies throughout the observed period and that not all of the banks were part of the negative banking sector trend induced by the crisis. The study showed no significant difference between the performances of banks in different Bosnia and Herzegovina entities, nor between smaller and larger banks. The main reasons for lack of relevant research on the banking market of Bosnia and","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74937315","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Banking Crises of the 1990s and 2000s in Developed Countries: How Similar Are They?","authors":"Thouraya Boudebbous","doi":"10.14706/JECOSS15526","DOIUrl":"https://doi.org/10.14706/JECOSS15526","url":null,"abstract":"(ProQuest: ... denotes formulae omitted.)IntroductionThe global financial system experienced a serious crisis in July 2007. This crisis, initially affecting the American housing market, gradually spread to the entire global financial system. The crisis not only caused the default of some of the world's largest banking institutions, but was also at the root of a worldwide financial crisis comparable to that of the Great Depression of 1929.The 2007-2008 banking crises have been the subject of numerous controversies as to their similarities and differences to past banking crises. Some claim that the recent crises are different in every aspect. They are chiefly due to a global savings glut and the absence of shadow banking system regulation (Adrian and Shin, 2009). Others maintain that the recent episodes of banking distress are not so different from the previous ones and that the latter show remarkable similarities to the former. According to Claessens and al. (2010b), these similarities are: First, the price of real and financial assets rising considerably in a number of countries before the crisis, notably in the United States and Europe. These prices reached 60% before the start of the crisis, which strongly recalls the price spike observed during major financial crises of the '90s, notably the Japanese crisis of 1997 (Caballero, 2010). A second similarity is the occurrence, in a number of major economies, of credit booms before the crisis, estimated at over 150% of GDP (Claessens and al., 2010b). Third, international financial integration facilitated large capital inflows, which contributed to the acceleration of GDP growth and massive credit growth, which in turn led to a strong fluctuation of global demand and a strong deterioration of current bank balances during the period preceding the crisis (Cardarelli and al., 2010). Fourth, the inadequacy of the regulation and prudential supervision framework (Bair, 2009).In light of these findings, the goal of this study is twofold. First, to determine if the banking crises of the 2000s have shared causes with the crises of the 90s, and second, to determine if aggregated accounting indicators are robust banking crisis indicators.Thus, in this study we propose first to identify banking crisis indicators by means of a limited dependent logit approach for a cross-sectional view of advanced economies during the period preceding the 2007-2008 banking crises, namely 1990-2006, and the period 2007-2012. Second, we propose to test the robustness of the results derived from the multivariate logit approach, by means of Bayesian statistics (BMA). Indeed, according to Cuaresma and Slacik (2009) and Babecký and al. (2012), the BMA approach has the advantage of reviewing different model combinations and of weighting them according to their adjustments in the model.This paper will be organized as follows: The first section being an introduction, in the second section we briefly present a review of the literature on b","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84422972","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Determinants of Foreign Direct Investment: An Empirical Analysis for Turkey","authors":"Huseyin Kalyoncu, Nadide Sevil Tuluce, Z. Yaprak","doi":"10.14706/JECOSS15524","DOIUrl":"https://doi.org/10.14706/JECOSS15524","url":null,"abstract":"(ProQuest: ... denotes formulae omitted.)IntroductionEconomic development of a country depends on utilization of resources for increasing productive capacity. In many developing countries, utilization of resources is rendered impossible by the scarcity of domestic capital. One of these economic problems of developing countries is that they do not have enough national savings to finance their investments. They are in constant need of foreign capital in forms of both direct and indirect investments. Foreign direct investment (FDI) is a process whereby the residents of the source country attain ownership of assets with the intention to control the production, distribution and other activities of a firm in the host country (Khachoo and Khan,2012). Foreign direct investment (FDI) is a way of international loan, by which those countries that have better investment opportunities at the present borrow from those that have capital surplus.FDI can be a crucial instrument to foster economic growth. FDI provides developing countries with the much needed capital for investments and enhances job creation, managerial skills and transfer of technology for less developed countries. Furthermore, FDI encourages technological development and also support the accumulation of physical capital.FDI plays a significant role in the development of international trade, and it helps to establish direct, stable, and long-lasting links between economies. The Organization for Economic Co-operation and Development (OECD) states that; FDI can serve as an important vehicle for local enterprise development, strengthening the competitiveness of both the recipient and investor (Groh and Wich, 2012). For example, Turkey in particular is pursuing further political and monetary integration with Europe. In that case maintaining a government effectiveness that is conducive to foreign investment and increases comparative advantage is integral to its integrationist aspirations.The significance of foreign direct investment (FDI) flows is well documented in literature for both the developing and developed countries. Foreign Direct Investment (FDI) inflows to developing countries have been substantially increasing and, compared to other capital flows, have remained the largest component of net resource flows to developing countries. FDI is a key element in international economic integration. FDI creates direct, stable and long-lasting links between economies. As a definition FDI is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. It encourages the transfer of technology and know-how between countries, and allows the host economy to promote its products more widely in international markets (Todaro, 1994).The role of foreign direct investment in the development of Turkish economy cannot be over emphasized. Foreign direct ","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87826086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}