Vicious Cycle between FDI and Geographical Economics Identifiers for Developing Countries: Which one Triggers the other?

In this study, the changes that can be made in the amounts of foreign direct investment and the reflection of these changes on the decision-making units in the economy are evaluated in terms of The Republic of Turkey and Turkic Republics by using data concerning geographic identifiers formed by elements of density, weathering and distance. As is known to all, the initial steps of the new economic geography approaches were taken under the leadership of the center-periphery model which was carried out by Krugman for the first time in 1991. This model was built on the economic-geographical structure, which is revealed by the interaction among incremental revenue in company level, transportation costs and factor mobility, and also it was built on the reasons that lead the subject structure to change. In this context, whereas incremental revenue and imperfect competition models are used, the approach, which is enhanced by introducing economicgeographic features into model, provides us with the concept of "new economic geography". Accordingly, while the foreign direct investments show a direction from developed countries to developing countries in the past; today, in which the factual reasons are more likely to stand out, it can be observed that the subject investments skid from developing countries to undeveloped countries. Turkey is in the category the developing countries. The Turkic Republics do not develop as much as Turkey does, and also these countries are substantially ranked at the bottom of the related category. One of the most important reasons of that situation is that the Turkic Republics haven't been able to realize the required developments in terms of legal regulations and in terms of the essential substructures such as urbanization, transportation and energy. As a consequence, the question whether to make the foreign direct investments in developing countries such as Turkey or in the relatively cheaper and open to all kinds of enterprise, subcategory developing countries such as Turkic Republics where the countries investing for substructure might weather the storm is of a big importance.