IDEAS home Printed from https://ideas.repec.org/a/exp/econcs/v3y2015i1p5-13.html
   My bibliography  Save this article

Investment Under Financial Liberalization: Post 1980 Turkey Case

Author

Listed:
  • Onur TUTULMAZ

    (Hitit University, Turkey)

  • Burcu DOGAN

    (Hitit University, Turkey)

Abstract

In the history of the modern state of Turkey many policies have been developed and applied in order to transform ineffective economy to a dynamic and steady one. The liberal policies have been effectively applied except for war periods. The main activity of liberal policies in Turkey s economy was conducted on January 24, 1980 with some important structural adjustment decisions. These decisions aimed to integrate the economy with the global system by applying global economic order that widely adopted all over the world. The decisions aimed also to activate a financial liberalization in the country. Financial liberalization generally includes the principles related to the removing the pressure on the interest rate, currency control and investment mobility. More liberalization steps came in 1989 aiming to increase the investment and growth. Foreign Direct Investment (FDI) was seen important for that purposes. However, short term capital flows, having been more effective in real investments than FDI, have led to several negative effects in this period. In the study some of the drawbacks of that process of financial liberalization have been discussed. The relation between FDI and Gross Domestic Product in the financial liberalization process has been tested with econometric implementation. Econometric estimation has been applied for this purpose to test this relationship for post 1980 era for Turkey as a developing country.

Suggested Citation

  • Onur TUTULMAZ & Burcu DOGAN, 2015. "Investment Under Financial Liberalization: Post 1980 Turkey Case," Expert Journal of Economics, Sprint Investify, vol. 3(1), pages 5-13.
    • Handle: RePEc:exp:econcs:v:3:y:2015:i:1:p:5-13
    as

    Download full text from publisher

    File URL: http://economics.expertjournals.com/wp-content/uploads/EJE_303tutulmaz5-13.pdf
    Download Restriction: no
    File URL: http://economics.expertjournals.com/23597704-303/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. H. Aydın OKUYAN & Erman ERBAYKAL, 2008. "Gelişmekte Olan Ülkelerde Doğrudan Yabancı Yatırımlar Ve Ekonomik Büyüme İlişkisi," Ekonomik Yaklasim, Ekonomik Yaklasim Association, vol. 19(67), pages 47-58.
    2. Babajide Fowowe, 2008. "Financial Liberalization Policies and Economic Growth: Panel Data Evidence from Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 20(3), pages 549-574.
    3. Marios Obwona, 2001. "Determinants of FDI and their Impact on Economic Growth in Uganda," African Development Review, African Development Bank, vol. 13(1), pages 46-81.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    2. Amar Anwar & Ichiro Iwasaki, 2023. "The finance–growth nexus in the Middle East and Africa: A comparative meta‐analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4655-4683, October.
    3. Sulaiman, Saidu & Masih, Mansur, 2017. "Is liberalizing finance the game in town for Nigeria ?," MPRA Paper 95569, University Library of Munich, Germany.
    4. Adeniyi, Oluwatosin & Oyinlola, Abimbola & Omisakin, Olusegun & Egwaikhide, Festus O., 2015. "Financial development and economic growth in Nigeria: Evidence from threshold modelling," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 11-21.
    5. Goryakin, Yevgeniy & Lobstein, Tim & James, W. Philip T. & Suhrcke, Marc, 2015. "The impact of economic, political and social globalization on overweight and obesity in the 56 low and middle income countries," Social Science & Medicine, Elsevier, vol. 133(C), pages 67-76.
    6. Muhammad Mahmud Mostafa, 2020. "Impacts of Inflation and Exchange Rate on Foreign Direct Investment in Bangladesh," International Journal of Science and Business, IJSAB International, vol. 4(11), pages 53-69.
    7. B. Ben Moummad & E. Ezzahid & A. Zoglat, 2023. "The impact of capital goods prices on Africa's economic performance," South African Journal of Economics, Economic Society of South Africa, vol. 91(1), pages 68-84, March.
    8. Bernard Sarpong & Edward Nketiah-Amponsah & Nkechi S. Owoo, 2020. "Health and Economic Growth Nexus: Evidence from Selected Sub-Saharan African (SSA) Countries," Global Business Review, International Management Institute, vol. 21(2), pages 328-347, April.
    9. Santos, Eleonora, 2017. "Assessing the Impact of Foreign Direct Investment on Domestic Manufacturing Firms’ Productivity: A Database for Portugal," MPRA Paper 88959, University Library of Munich, Germany.
    10. Ahmed, Abdullahi D., 2013. "Effects of financial liberalization on financial market development and economic performance of the SSA region: An empirical assessment," Economic Modelling, Elsevier, vol. 30(C), pages 261-273.
    11. Frank Iyekoretin Ogbeide & Oluwafemi Mathew Adeboje, 2020. "Effects of financial reform on business entry in sub‐Saharan African countries: Do resource dependence and institutional quality matter?," African Development Review, African Development Bank, vol. 32(2), pages 188-199, June.
    12. Tajudeen, Egbetunda & Taofeek Olusola, Ayinde & AbdulGaniy Ademola, Balogun, 2017. "Interest Rate Liberalization, Financial Development and Economic Growth in subSaharan African Economies," African Journal of Economic Review, African Journal of Economic Review, vol. 5(2), July.
    13. Narayan, Seema & Narayan, Paresh Kumar & Mishra, Sagarika, 2010. "Investigating the relationship between health and economic growth: Empirical evidence from a panel of 5 Asian countries," Journal of Asian Economics, Elsevier, vol. 21(4), pages 404-411, August.
    14. Samir Saidi & Sami Hammami, 2016. "The Place of Transport Infrastructures among the Economic Factors of Foreign Direct Investment Attractiveness in the Meda-10 Region," American Journal of Economics and Business Administration, Science Publications, vol. 8(1), pages 23-34, March.
    15. Abdulkadir Abdulrashid Rafindadi & Almustapha A Aliyu, 2017. "Growing the Growth of the Ghanaian Economy: Is the Function of the Countrys Financial Development of Any Significance?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(2), pages 206-221, February.
    16. Akinkugbe, Oluyele, 2003. "Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries," WIDER Working Paper Series 002, World Institute for Development Economic Research (UNU-WIDER).
    17. Ichiro Iwasaki & Shigeki Ono, 2024. "Economic development and the finance–growth nexus: a meta-analytic approach," Applied Economics, Taylor & Francis Journals, vol. 56(57), pages 8021-8038, December.
    18. Sugeeth Patabendige & Chathuri Senarath, 2015. "Financial Liberalization: A Fourth Generation Thought," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 9(3), pages 73-82.
    19. Biruk Birhanu Ashenafi & Yan Dong, 2023. "Financial openness, financial sector development, and income inequality: With an extensive set of pull and push factors," African Development Review, African Development Bank, vol. 35(2), pages 138-151, June.
    20. Mahjus Ekananda & Dion Jogi Parlinggoman, 2017. "The Role of High-Tech Exports and of Foreign Direct Investments (FDI) on Economic Growth," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 194-212.

    More about this item

    Keywords

    financial liberalization; foreign direct investment; economic growth;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:exp:econcs:v:3:y:2015:i:1:p:5-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alin Opreana The email address of this maintainer does not seem to be valid anymore. Please ask Alin Opreana to update the entry or send us the correct address (email available below). General contact details of provider: https://economics.expertjournals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.