 An Empirical Analysis of the Relationship between Foreign Direct Investment and Unemployment Rate: Evidence from TurkeyMehman Karimov, Anett Paradi-Dolgos and Rita Koroseczne Pavlin European Research Studies Journal, 2020, vol. XXIII, issue 1, 453-464 Abstract: Purpose: This paper is aimed to analyze the impact of Foreign Direct Investment inflows in Turkey on macroeconomic variables among them the unemployment rate. Design/methodology/approach: The time series datasets (FDI, UEMP), were obtained from the World Bank database, which covers the time period 1980-2017 were utilized in employed statistical models as the ADF Unit Root, Philips–Perron Unit Root, Johansen co-integration, and the Granger causality tests, to accomplish the empirical part of the paper. Findings: Based on the results, it was confirmed that there was at most one presence of the co-integration among the analyzed series. Additionally, the results of Granger causality test had showed that there is unidirectional causality from FDI to UEMP. Originality: Thus, this paper can be a proof that Foreign Direct Investment inflows have a crucial impact on decreasing the unemployment rate in Turkey. Keywords: FDI; unemployment; unit root test; Johansen co-integration test; Granger Causality test. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxiii:y:2020:i:1:p:453-464 Access Statistics for this article More articles in European Research Studies Journal from European Research Studies Journal |
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