Study On The Legal Issues Of Foreign Direct Investment In Turkey’s Economic System Reform

Turkey is located in the westmost part of Asia, stretching across Europe and Asia. The country boasts of its profound historical culture, superior geographical location and beautiful natural landscape. This place surrounded by the Black Sea, the Aegean and the Mediterranean is where ancient Greek met ancient Rome, and where Asia separates from Europe. This charming country keeps attracting visitors from all over the world. In the last decade, Turkey deepened its political reforms, stabilized the society, rapidly developed the economy and improved investment environments. Therefore, it has become a popular destination for investments.This paper studies legal issues of foreign direct investment (FDI) in the Turkish economic system reform, explores the legal system and characteristics of FDI in Turkey, and investigates into significant influences of FDI on the Turkish economy. It tries to find out existing problems in the Turkish FDI legal system, and makes reasonable improvement suggestions.This paper has six parts. Chapter I explains the historical background and legal framework of the Turkish economic system reform. This chapter introduces the economic development path and legal system establishment since the country’s foundation, as well as economic backgrounds of FDI and characteristics of Turkish law. Chapter Ⅱ discusses the history and current situation of FDI in Turkey. The importance of FDI in the Turkish economy and the necessity of the FDI legal system are argued about. Chapter III and IV talks about the main FDI legal system, describes the basic framework of Turkish FDI law, and analyzes several major laws. In chapter V, a comparison is made between the Turkish and Chinese FDI legal systems. The Chinese FDI legal system is introduced briefly, and similarities and differences of absorbing foreign capitals are analyzed. Chapter VI indicates preliminary conceptions on improving the Turkish FDI legal system. Existing problems are raised and rational suggestions are made. In chapter VII, a conclusion is drawn by summarizing the whole paper.