Exploring the Effect of Foreign Currency Volatility on Foreign Capital: The Case of Turkey?
14 Pages Posted: 22 Feb 2014 Last revised: 18 Sep 2015
Date Written: September 1, 2008
Abstract
In this paper, the author initially determines the reasons of the lack of long term foreign capital investments in Turkey and then touches the application of International Accounting Standards in Turkish Capital Market as Turkey’s being a candidate for European Union. Then he shows the detrimental consequences of applying existing taxation rules on the financial statements of foreign invested capital in Turkey by means of a case study. Then he proposes a tax rule change in order to attract more foreign investment flow to Turkey.
Keywords: Inflation, devaluation, foreign currency, foreign exchange loss
JEL Classification: M41
Suggested Citation: Suggested Citation