@article{article_919332, title={IMPACT OF FOREIGN CAPITAL INFLOWS ON DOMESTIC INVESTMENTS: A PANEL DATA ANALYSIS FOR SELECTED DEVELOPING COUNTRIES}, journal={Sayıştay Dergisi}, pages={135–155}, year={2019}, author={Boğa, Semra}, keywords={Foreign Direct Investment FDI , Portfolio Investment, Foreign Loan, Domestic Investment, Panel Data Analysis.}, abstract={This paper empirically analyzes the relationship between the foreign capital inflows and domestic investment in 14 developing countries -Bangladesh, Botswana, Brazil, China, India, Indonesia, Mexico, Morocco, Pakistan, Peru, Philippines, South Africa, Thailand, and Turkey- over the period 1990-2017. Pesaran’s Cross-Section Dependence Test was performed to test the correlation and IPS Unit Root Test was applied to reveal the stationarity level between the units. Dumitrescu and Hurlin’s Granger Panel Causality test results confirmed a one-way causality from Portfolio Investment PRF to Gross Fixed Capital Formation GFC and a bidirectional causality between GFC and Gross Domestic Product GDP , GFC and Foreign Direct Investment FDI , GFC and Foreign Loans LNS in the short-term. Long-term relationships between the variables were tested with the DOLSMG estimator. According to the test results; a 1% rise in FDI decreases GFC by 0.59 %, a 1% rise in GDP increases GFC by 0.45 %, a 1% rise in PRF increases GFC by 1.68 %, and a 1% rise in LNS boosts GFC by 2.12 %.}, number={114}, publisher={T.C. Sayıştay Başkanlığı}