Abstract :
In this study, it is aimed to determine the factors affecting the foreign portfolio investment and impact of these factors for Turkey. For this, multiple regression method is applied to demonstrate relationship between foreign portfolio investment and factors which are rezerve, GDP (Gross Domestic Product), current account balance, growth rate, goverment debt securities, inflation rate, ISE return rate, crisis, USAinterest rate, DowJones return rate, the growth rate of developed countries over the period 1999-2009. However, the multiple regression method with the original values interrupted with multicollinearity problem. Factor analysis method is used as an intermediate solution to this problem. Derived variables obtained from factor analysis are used in multiple regression analysis and the analyis is repeated using these new factors as decision variables. As a result of the analysis inflation and the growth rate with ISE nd Dow Jones index have been found as effective variables.
NaturalLanguageKeyword :
Foreign portfolio investment , push factors , pull factors , factor analysis
