Diaspora Bonds as a New Foreign Capital Tools: A Research on the Countries Applying and Potential of the Turkish Diaspora
Diaspora Bonds as a New Foreign Capital Tools: A Research on the Countries Applying and Potential of the Turkish Diaspora

Author(s): Atakan Durmaz, Adem Kalça
Subject(s): Supranational / Global Economy, Migration Studies, Financial Markets, Socio-Economic Research
Published by: Transnational Press London
Keywords: diaspora; diaspora bonds; foreign capital; growth;
Summary/Abstract: Developing countries that want to sustain their economic development and close the economic gap between developed countries need foreign capital, especially because of insufficient domestic savings. In this context, there are many ways in which countries resort to attracting foreign capital. However, since the early 1990s, some countries have seen diaspora as a source of foreign capital they need and have developed methods for this source. One of these methods is the diaspora bond, which emerges as a new generation financial borrowing instrument and which has different advantages in terms of both the issuing country and the buyer compared to other financial instruments and is generally presented only to diaspora members. From this point of view, the aim of this study is to present the effectiveness of these diaspora bonds used as a new generation borrowing instrument and to provide an alternative source of foreign capital that Turkey needs in line with its economic objectives. It is also to raise awareness of this issue.

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