Yilmaz, Ömer; Kaya, Vedat; Akinci, Merter
July 2011
Ataturk University Journal of Economics & Administrative Science;2011, Vol. 25 Issue 3/4, p13
Academic Journal
One of the important problems that the developing countries face is the defıciency of savings. This problem has oriented the countries to benefıt from foreign sources and foreign direct investments. Hence, both developed and developing countries strive densely to attract foreign direct investments in their own countries. The reason behind this attempt is the wish to exploit capital, new technology and the increase of the employment provided by the foreign direct investments. In this study, the effects on the economic growth of the foreign direct investments for Turkish economy in the period of 1980-2008, are analyzed by using econometric methods. Two variables, gross domestic product and foreign direct investment, are involved in the analysis. Time series datas related to the variables have been tested by ADF unit root test and the results have shown that the first difference values of the two variables are stationary. Granger causality test has been applied to determine the causality relationship between the variables and one-way causality relationship from foreign direct investments to economic growth has been found. Moreover, EG cointegration test has been applied to the variables and it has been observed that both of them are cointegrated. The estimation results have shown that foreign direct investments create the positive effects on the economic growth.


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