US Investment in Automotive industry in Turkey
Why to invest in Turkey?
Successful economy: Turkey has a bright future and is expected to be the fastest growing economy among the OECD members during 2011-2017 with an annual average real GDP growth rate of 6.7 percent. Foreign direct investments have been an important part of building Turkey’s economy since 2003. It has enjoyed a sustainable economic growth with 4.3 percent annual average real GDP increase for the last 7 years and GDP growth from USD 230 billion in 2002 to USD 618 billion in 2009.
Turkey is the 16th largest economy in the world and the 6th largest economy compared to the EU area in 2009; FDI inflow in total for the last 7 years is over USD 83 billion and it is ranked as the 15th most attractive FDI destination for 2008-2010 (UNCTAD). FDI Inflow to Turkey is presented below (USD billion):
Turkey has attracted a high amount of FDI. Inflow by the most significant countries is presented below (USD million):
The legislation, by providing increased rights and more secure environment for foreign capital, helped the country attract more foreign direct investment; furthermore, this was supported by guaranteed profit transfers and equal treatment for the domestic and foreign investors. The company establishment procedures have been simplified to a great extent as well.
Competitive tax system: Corporate income tax is reduced to 20 percent and individual income tax is between 15 and 35 percent. Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones could include total or partial exemption from corporate income tax.
Developed infrastructure: Turkey has developed technological infrastructure in telecommunications and transportation; furthermore, it has low-cost sea transportation and good railway transportation to Central and Eastern Europe.
Employment: Foreign capital companies may employ foreign personnel; in addition,...
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