The Relationship between Foreign Direct Investment and Economic Growth: A Case of Turkey

  title={The Relationship between Foreign Direct Investment and Economic Growth: A Case of Turkey},
  author={Orhan Gokmen},
  journal={International Journal of Economics and Finance},
  • Orhan Gokmen
  • Published 15 June 2021
  • Economics
  • International Journal of Economics and Finance
This paper examines the relationship between net FDI inflows and real GDP for Turkey from 1970 to 2019. Although conventional economic growth theories and most empirical research suggest that there is  a bi-directional positive effect between these macro variables, the results indicate that there is a uni- directional significant short-run positive effect of real GDP on net FDI inflows to Turkey by employing the Vector Error Correction Model, Granger Causality, Impulse Response Functions and… 


Foreign Direct Investment is one of the crucial forms of international equity flows for having undeniable growth in gross domestic product among emerging countries. The main objective of the study is

The role of institutional quality in FDI inflows and carbon emission reduction: evidence from the global developing and belt road initiative countries

Overall, institutional quality has a significant and positive impact on foreign direct investment inflow, while energy use reduces it in all panels, which has considerable policy significance for countries to carry out strong policy reforms to increase green FDI and improve environmental quality.

Revisiting the effects of energy, population, foreign direct investment, and economic growth in Visegrad countries under the EKC scheme.

This research studied the impacts of the environmental Kuznets curve and the determinants of economic growth for Visegrad countries from 1990 to 2018. This paper reflects on the effects of renewable

Management of the Russian Interregional Investment Distribution Using the Autonomous ExpenditureMultiplier Model

An effective and competitive investment policy requires improvements to the existing tools. The ongoing COVID-19 crisis requires understanding as to how the recovery processes should be implemented.



The Effect Of Foreign Direct Investment On Economic Growth: The Case Of Turkey

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

How Do Foreign Direct Investment and Growth Interact in Turkey

This paper empirically investigates the relation between growth and Foreign Direct Investment (FDI) in Turkey. There are mixed conclusions about the impact of FDI on growth and the literature

How Does Foreign Direct Investment Really Affect Developing Countries' Growth?

This paper contributes to the literature on foreign direct investment (FDI) and economic growth in two main ways. First, we examine the effect of FDI on economic growth for 44 developing countries

Effects of Foreign Direct Investment on Growth in Turkey

This study aims at analyzing the relationship between Foreign Direct Investment and Growth in Turkey by using Threshold Cointegration. As the studies about the impact of Foreign Direct Investment on

Foreign Direct Investment, Financial Development, and Economic Growth Nexus in Bangladesh

This article aims to explore the short- and long-run impact of foreign direct investment (FDI), financial development (FD), capital formation, and the labor forces on the economic growth of

Increasing Returns and Long-Run Growth

  • P. Romer
  • Economics
    Journal of Political Economy
  • 1986
This paper presents a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity. It is essentially a competitive

Endogenous Technological Change

  • P. Romer
  • Economics
    Journal of Political Economy
  • 1990
Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is

On the Mechanics of Economic Development

Co-integration and error correction: representation, estimation and testing

The relationship between cointegration and error correction models, first suggested by Granger, is here extended and used to develop estimation procedures, tests, and empirical examples. A vector of