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Relationship Between Foreign Direct Investment And Economic Growth In Turkey After The Global Financial Crisis

Author

Listed:
  • Mustafa Göktu? Kaya

    (The Ministry of Finance, Tax Inspector Association)

  • Perihan Hazel Kaya

    (Selcuk University)

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.

Suggested Citation

  • Mustafa Göktu? Kaya & Perihan Hazel Kaya, 2016. "Relationship Between Foreign Direct Investment And Economic Growth In Turkey After The Global Financial Crisis," Proceedings of International Academic Conferences 4106831, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:4106831
    as

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    File URL: https://iises.net/proceedings/25th-international-academic-conference-oecd-paris/table-of-content/detail?cid=41&iid=031&rid=6831
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    References listed on IDEAS

    as
    1. Granger, C. W. J. & Newbold, Paul, 1986. "Forecasting Economic Time Series," Elsevier Monographs, Elsevier, edition 2, number 9780122951831 edited by Shell, Karl.
    2. Azman-Saini, W.N.W. & Baharumshah, Ahmad Zubaidi & Law, Siong Hook, 2010. "Foreign direct investment, economic freedom and economic growth: International evidence," Economic Modelling, Elsevier, vol. 27(5), pages 1079-1089, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Foreign Direct Investment; Economic Growth; Turkish Economy; Co-Entegration Test;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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