Countries began to compete in attracting foreign investments, especially in the 1990s, and today, they are developing their economies and financing their foreign debts by promoting direct investments. Direct investments ensure national income growth, employment growth, technology transfer and economic growth in the country receiving the investments. In addition to this, direct investments is an important aspect that will initiate the economic development movement of developing countries. However, Turkey, in general, has not yet reached its potential to attract investment. Moreover, the effect of direct investments on macroeconomic variables has been very limited in our country, as they have been used in mergers and acquisitions and for real estate development. In this study, the difference of foreign direct investments from other investments has been revealed and their contributions to the countries have been explained; the direct investment performance of our country has been evaluated in general and on industrial basis and several solution proposals have been presented.
Foreign Direct Investments, Greenfield Investments, economic development, Mergers and Acquisitions.