THE EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: THE CASE OF TURKEY

Mustafa Tahir Demirsel (), Adem Ö?üt () and Mehmet Mucuk ()
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Mustafa Tahir Demirsel: Selcuk University
Adem Ö?üt: Selcuk University
Mehmet Mucuk: Selcuk University

No 702081, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: In developing countries adequate and necessary investment cannot be realized since their domestic savings rate is low and foreign savings rate is very low. Here FDI helps diminish domestic and foreign savings deficits. Capital account liberalization in Turkey was initiated in conjunction with the process of economic and financial reforms that started in 1980, and was fully completed in 1989. In this paper, the objective is to analyze the relationship between FDI and economic growth in Turkey by using the data covering the time period between 2002:Q1 and 2014:Q1. For this purpose unit root test, Johansen cointegration test, and variance decomposition were applied. According to the findings there is no relationship between these variables in the long run.

Keywords: Foreign Direct Investment; Economic Performance; Economic Growth (search for similar items in EconPapers)
JEL-codes: A10 E00 F30 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2014-10
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-fdg and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Proceedings of the Proceedings of the 12th International Academic Conference, Prague, Oct 2014, pages 297-306

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:0702081

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