FOREIGN DIRECT INVESTMENT STATISTICS IN TURKEY MENA/OECD TASK FORCE ON FDI STATISTICS NOVEMBER 9, 2006 ISTANBUL Yesim Sisik Balance of Payment Division Statistics Department Central Bank of Turkey

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FOREIGN DIRECT INVESTMENT STATISTICS IN
TURKEYMENA/OECD TASK FORCE ON FDI
STATISTICSNOVEMBER 9, 2006ISTANBULYesim
SisikBalance of Payment DivisionStatistics
DepartmentCentral Bank of Turkey
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• CONTENTS
• A. LEGAL FRAMEWORK
• Legal Framework related to Treasury
• Legal Framework related to CBRT
• B. METHODS OF DATA COLLECTION
• FDI Flow Data
• FDI Position Data
• Direct Investment Abroad
• Direct Investment in Turkey (Survey System)
• C. RELATIONS WITH THE INTERNATIONAL
  ORGANISATIONS AND USERS

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• INTRODUCTION
• FDI Statistics are compiled and disseminated by
  the CBRT as a part of BOP and IIP statistics.

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• A. LEGAL FRAMEWORK
• Legal Framework related to Undersecretariat of
  Treasury.
• The new FDI Law facilitates the establishment
  of an investment monitoring system instead of
  an investment permission system

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• Legal Framework related to Undersecretariat of
  Treasury.
• Internationally accepted FDI definition is
• included to the new FDI Law.
• Also, the new Law contains comprehensive
• investor rights.

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Regarding outward FDI, Turkish residents may
freely transfer up to USD 5 million through banks
in order to establish companies abroad. The
transfer of capital exceeding USD 5 million is
authorized by Treasury. The banks and customs
administrations give information to the Treasury
within 30 days from the date of each transaction.
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• Legal Framework related to Central Bank of Turkey
• The compilation of BOP data is regulated by the
  CBRT Law.
• Confidentiality of data reported by banks are
  guaranteed by CBRT Law.

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• B. METHODS OF DATA COLLECTION
• 1) FDI FLOW DATA
• Banks are submitted the Monthly Foreign
  Exchange Position Report to the CBRT within 21
  days after the end of the reference period.
• Data on FDI flows are collected from this
  monthly report and details are also provided to
  the CBRT.
• Private sectors external debt monitoring
  system is a data source for inward FDI other
  capital transactions.

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2) FDI POSITION DATA a) Direct Investment
Abroad Data on direct investment abroad are based
on Banks foreign exchange records for banking
sector and Undersecretariat of Treasurys records
for non-bank sector Sectoral and geographical
breakdown are also available
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• b.Direct Investment in Turkey
• Annual FDI survey conducted by Central Bank of
  Turkey
• The first survey was a pilot study and outcomes
  were not published.
• In 2001, the first official survey was conducted.
• Every year, response rate has increased
  gradually.
• Conducting annual survey was a challenging task
  for the CBRT.

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• Implementations, difficulties, and
  improvements..............
• I- Sampling method
• Threshold was determined to select survey
  population in early years of the survey.
• Stratified sampling method has been added to
  the selection process last year.

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• Implementations, difficulties, and
  improvements..............
• II- Technical Improvements
• Official e-mail addresses are provided.
• Sample survey, which can be downloaded by
  respondents, is posted to the CBRTs website.
• This website address is not accessible to the
  public and it was only provided to respondents.

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• Implementations, difficulties, and
  improvements..............
• III- The coverage of FDI survey
• FDI enterprises are required to report both
  the book value and the market value.
• Book value of a FDI enterprise consists of
• - paid-up capital
• - all types of reserves
• - reinvested earnings
• - non-distributed profits including the
  current years profit
• Market values were included in IIP
• Next year, trade credits related questions
  are planned to be included into FDI survey

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• Implementations, difficulties, and
  improvements..............
• IV- Valuation of FDI position
• Following the finalization of the survey, FDI
  stocks are adjusted to market prices by using
  market value/book value ratios for non-listed FDI
  enterprises.
• If the respondent FDI enterprises equity
  shares are traded in the IMKB, the announced (or
  reported) market values of these enterprises are
  used.

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• C- RELATIONS WITH THE INTERNATIONAL ORGANIZATIONS
  AND USERS
• Users of FDI data and international
  organisations such as the IMF, OECD and EUROSTAT
  request very detailed and timely information.
• FDI flow and stock data with geographical and
  economic activity breakdown are submitted to the
  OECD and EUROSTAT. Only, FDI flow and stock data
  are sent to the IMF as a part of BOP and IIP data
  submission on an annual and quarterly basis.
• For other national and international users,
  the detailed FDI data with geographical and
  economic activity breakdown are posted on the
  CBRTs internet website and can be reached from
  the following links (www.tcmb.gov.tr/odemedenge/ii
  p.xls and www.tcmb.gov.tr/odemedenge/bop.xls)

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