FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD

Abstract

The main purpose of this study is to detect the long-term relationship between foreign direct investment inflows and net exports in Turkey. The first section is devoted to the impact of FDI on net exports and recent developments relating to those variables in Turkey are briefly examined. In the second section, a literature survey is made to present empirical results for different countries. Finally, empirical analyses are conducted for Turkey by using a time series data for the post- 1980 period. The results reveal that there is no significant complementary relationship between FDI and net exports in Turkey but the main motive behind FDI inflows to Turkey is to gain access to local market rather than producing for foreign markets

Keywords

• FDI inflows, Net exports, Cointegration test

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