Location of Foreign Logistics Firms in Istanbul

The effects of the social and spatial changes caused by globalization experienced worldwide are also seen in the Istanbul metropolitan area. In recent years, the tremendous changes in economic systems, politics, and technology throughout the world, which have combined with certain specific factors such as the opening of Eastern European markets, have all acted to enhance Istanbul’s position among world cities. With this rapid transformation process, foreign-capital companies are investing in Turkey, especially in Istanbul. The Istanbul metropolitan area is an essential centre of focus within the changing world balances in the region encompassing the Balkans, the Middle East, and the Turkic Republics. There are also economic potentials in addition, to the natural and geopolitical location of Istanbul. The advantageous conditions of Istanbul have been highly effective, including its location as an important market, the presence of the qualified, young and low-cost workforce, a dynamic and open economy and liberal foreign capital legislation, an advanced access and communication infrastructure, an advanced work environment, as well as operations of the world-famous multinational companies. Due to both its geographical location and its historical relationships, today the Turkish Republic acts as a country that bridges markets across Northern Africa and the Middle East thus are becoming an important point for foreign logistics firms. Within the last decade, the importance of the logistics sector increases gradually in the Istanbul metropolitan area, located in the crossroads between two continents in terms of the Istanbul’s international dealings. In this light, it is necessary, to have an understanding of both the foreign firms in logistics industry operating in Istanbul and the impacts of the characteristics of these companies on the city’s development. However, the role that the characteristics of logistics FDI firms play on the location choice at the intra-metropolitan level is unknown. This paper focuses on the characteristics and spatial distribution of foreign firms in logistics industry.