This paper examiııes the causal relationships betweeıı foreign direct investment (FDI) and economic growth using Turkish annual data for the period 1976-2002, by means of coiııtegration and error-correction models. The (Augmented) Dickey-Fuller (A) DF and Phillips- Perron (PP) unit root tests are performed and all-time series become stationary after first differencing. Since all time series data are stationary in the first difference, cointegration tests are necessary. Engle-Graııger bivariate cointegration test results indicate these two variables are cointegrated. The results from Granger causality tests based on error-correction models slıow that there exists bidirectional Granger causality between FDI and economic growth, supporting the feedback hypothesis for Turkey. The diagnostic tests for adequacy of the model also performed and passed.
Primary Language | English |
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Journal Section | Eski Sayılar |
Authors | |
Publication Date | January 10, 2005 |
Published in Issue | Year 2005 Volume: 6 Issue: 23 |
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Öneri
Marmara UniversityInstitute of Social Sciences
Göztepe Kampüsü Enstitüler Binası Kat:5 34722 Kadıköy/İstanbul
e-ISSN: 2147-5377