The Role of Corporate Governance in fdi decisions: Evidence from Taiwan

Import Substitution Policy should be critize before the good corporate governance practises. Import substitution Policies implemented until the open Custom Union in 1996. This means that, government protect the private sector entrepreneurs with respect to the foreign investors. Some of the fundamental role of import substitution policy was developing internal market investments, increasing production capacity of private entrepreneurs, increasing productivity and decreasing unemployment. Although, government anticipated sustainable economic growth and long run development target, these targets could not be realized.
Why import substitution policies could not ensured its task? Private enterprises capital formation could not be sufficient to pursue industrialization widely. Intervention of private sector handicapped to productive and efficient private companies. Local firms reluctant to improve their management policies and innovations, research and development ideas did not important for these period.
Turkish Companies started to play on international market but they cannot obtain more benefits at the beginning. Due to import substitution policies, they cannot compete abroad companies. Competitiveness brings corporate governance and import substitution policies prevented competitive market.
Finally we can say that, Turkish Economic environment was insufficient to support cooperation and industrialization. Economy made war external crises and capital inadequacy until the years 1960, and tired to solve internal political issues until the year 1985. Import substitution policies also prevent good corporate governance.
Management Thought and corporate governance studying are handled in Turkey.