Estimating and Evaluation of International Capital Movements in the Perspective of Corporate Economic Geography

Capital movements are one of the important factors affecting the geographical distribution of economic activities. Therefore, the assessment of international capital movements can help to understand firms’ location choices and estimate the geographical distribution of economic activities. Classical Economic Theory implies that the economies of different countries will reach similar levels over time. However, the fact that countries continue to show great wealth inequalities has been a considerable debate. While some parts of the world were exposed to an unprecedented capital movement, some parts of the world were not affected by these capital movements. Consciousness, which is directly interacting with social interactions and social structures, shapes economic movements. In this context, international capital movements can be considered not only economic behavior but a behavior dependent on social relations. This study studies international foreign direct investment and foreign portfolio investment types. In this study, to evaluate the asymmetric capital distribution from the perspective of institutional economic geography, estimation was made with artificial neural network models using the data of 20 countries between 2006 and 2020.