FOREIGN DIRECT INVESTMENTS IN FREE ZONES: AN ASSESSMENT BY CONSIDERING RELATED THEORIES

Authors : Lütfü ÖZTÜRK

Pages : 110-129

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Publication Date : 2004-05-01

Article Type : Research Paper

Abstract :This study, has investigated Foreign Direct Investments in Free Zones by considering Foreign Direct Investment theories. Foreign Direct Investments in these zones has been studied in the light of the theories which are based on perfect markets as Differential Rate Return Hypothesis, Portfolio Theory, Output and Market-Size Hypotheses. Furthermore, these investments have been examined by considering the theories which are based on imperfect markets as Product Cycle Hypothesis, Oligopolistic Reactions Hypothesis, Internalisation Hypothesis, Dunning’s OLI Paradigm, and Caves Economies. The place of Free Zones in New International Division of Labour has been discussed by referring to determinants of Foreign Direct Investment in Developing Countries
Keywords : Free Zone, Foreign Direct Investments, New International Division of Labour