Proceedings of the 25th International Academic Conference, OECD Headquarters, Paris

RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN TURKEY AFTER THE GLOBAL FINANCIAL CRISIS

MUSTAFA GÖKTUĞ KAYA, PERIHAN HAZEL KAYA

Abstract:

With the globalization process, economic, commercial and technological boundaries have become uncertain and in this way capital transfer has been possible between different countries. Capital transfers which is realized through short term portfolio investment and foreign direct investment are very important for the countries. In this study on existence of a potential relationship between economic growth (GDP) and foreign direct investment (FDI) was examined fort he period of 2008-2015 quarterly for Turkish economy after the global financial crisis. the mentioned relationship was investigated using stationary, test, Johansen-Juselius co-entegration test, Granger causality test and variance decomposition. As a result, Granger causality test, variance decomposition showed that there exit a uni-directional causality relation running from GDP to FDI.

Keywords: Foreign Direct Investment, Economic Growth, Turkish Economy, Co-Entegration Test

DOI: 10.20472/IAC.2016.025.031

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