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THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH IN TURKEY / Türkiye’de Doğrudan Yabancı Sermaye Yatırımları İle Ekonomik Büyüme Arasındaki İlişki

Year 2020, Volume: 4 Issue: 2, 409 - 420, 30.10.2020
https://doi.org/10.29216/ueip.785772

Abstract

Türkiye’de doğrudan yabancı sermaye yatırımları (DYSY) 1980’li yılların başlarında başlatılan liberalleşme programı sonrasında hızla genişlemiştir. Türkiye, DYSY çekme performansı açısından 2000 sonrası dönemde rekor bir seviye yakalamıştır. Yabancı para girişi, sermaye stokunda artış, istihdam ve teknoloji transferi, DYSY’nin alıcı ülkeye sağladığı yararlardan bazılarıdır. DYSY’nin alıcı ülkenin ekonomisine en önemli etkisi, üretim gerçekleştirme yolu ile sağladığı katkıdır. Bu ampirik çalışma 1980-2015 periyodunda, DYSY ile ekonomik büyüme arasındaki ilişkiyi zaman serisi analizi ile araştırmaktadır. Johansen Eş-bütünleşme testi sonuçları, ekonomik büyüme ile FDI arasında pozitif uzun dönem ilişki olduğunu göstermiş ve etki istatistiksel olarak anlamlı bulunmuştur. Granger nedensellik testi bulgularına göre, DYSY ile ekonomik büyüme arasında karşılıklı bir ilişki bulunmaktadır. Bu çalışmanın sonuçları, Türkiye’de DYSY’deki pozitif bir değişimin, mal ve hizmetlerin üretimi artışını desteklediğini göstermektedir

References

  • Alagöz, M., Erdoğan, S. ve Topallı, N. (2008). Doğrudan Yabancı Sermaye Yatırımları ve Ekonomik Büyüme: Türkiye Deneyimi 1992‐2007. Gaziantep Üniversitesi Sosyal Bilimler Dergisi, 7(1), 79‐89.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S. and Sayek, S. (2004). FDI and Economic Growth, The Role of Local Financial Markets. Journal of International Economics, 64(1), 89-112.
  • Alıcı, A.A., Ucal, M.Ş. (2003). Foreign Direct Investment, Exports and Output Growth of Turkey: Causality Analysis. European Trade Study Group (ETSG) Fifth Annual Conference, Universidad Carlos III deMadrid, 1-17.
  • Antwi, S., Mills, E., Mills, G. and Zhao X. (2013). Impact of Foreign Direct Investment on Economic Growth: Empirical Evidence from Ghana. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(1), 18-25.
  • Arısoy, İ. (2012). The Impact of Foreign Direct Investment on Total Factor Productivity and Economic Growth in Turkey. The Journal of Developing Areas, 46(1), 17-29.
  • Aslanoğlu, E. (2002). The Structure and the Impact of Foreign Direct Investment in Turkey. Journal of Faculty of Economics at Marmara University, 17(1), 31‐50.
  • Assanie, N., Singleton, B. (2002). The Quality of Foreign Direct Investment: Does it Matter for Economic Growth?, Asia Pacific Research Centre and APRC Productivity Centre.
  • Balamurali, N., Bogahawatte, C. (2004). Foreign Direct Investment and Economic Growth in Sri Lanka. Sri Lankan Journal of Agricultural Economics, 6(1), 37-50.
  • Balasubramanyam, V. N., Salisu, M. Sapsford, D. (1996). Foreign Direct Investment and Growth in EP and IS Countries, Economic Journal, 106, 92-105.
  • Bani-Mustafa, A., Elian, M.I. and Sawalha, N. (2020). Revisiting the FDI-Growth Nexus: ARDL Bound Test for BRICS Standalone Economies. Modern Applied, Science, 14(6), 1-20.
  • Bhattarai K., Ghatak, S. (2010). FDI, Investment and Growth in OECD Countries, School of Economics, Kingston University of London, Economics Discussion Paper, 5, 1-17.
  • Borensztein, E., Gregorio, J.D. and Lee, J-W. (1998). How Does Foreign Direct Investment Affect Economic Growth?. Journal of International Economics, 45(1), 115-135.
  • Bosworth, B., Collins, S.M. (1999). Capital Inflows, Investment and Growth. Tokyo Club Papers, 12, 35-74. Carkovic M., Levine R. (2002). Does Foreign Direct Investment Accelerate Economic Growth?. Institute of International Economics Press, Washington DC, 195-221.
  • Central Bank of the Republic of Turkey (CBRT). http://www.tcmb.gov.tr/
  • Choe, J. I. (2003). Do Foreign Direct Investment and Gross Domestic Investment Promote Economic Growth?. Review of Development Economics, 7, 44–57.
  • Dickey, D. A., Jansen, D. W. and Thornton, D. L. (1991). A Primer on Cointegration With an Application to Money and Income. Federal Reserve Bank of St. Louis Review, 58-78.
  • Erçakar, R.F., Yılgör, M. (2010). Gelişmekte Olan Ülkelerde DYY-GSYİH İlişkisi: Panel Birim Kök ve Eş Bütünleşme Sınamaları. Finans‐Politik & Ekonomik Yorumlar, 47, 549, 31-38.
  • Ericsson, J., Irandoust, M. (2001). On the Causality between Foreign Direct Investment and Output: A Comparative Study. The International Trade Journal, 15(1), 1-26.
  • Falki, N. (2009). Impact of Foreign Direct Investment on Economic Growth in Pakistan. International Review of Business Research Papers, 5(5), 110-120.
  • Fortainer, F. (2007). Foreign Direct Investment and Host Country Economic Growth: Does the Investor’s Country of Origin Play a Role?. Transnational Corporations, 16(2), 41-76.
  • Granger, C. W. J., Newbold, P. (1974). Spurious Regressions in Econometrics. Journal of Econometrics, 2, 111- 120.
  • Granger, C.W.J. (1988). Some Recent Development in a Concept of Causality. Journal of Econometrics, 39(1-2), 199-211.
  • Hansen, H., Rand, J. (2006). On the Causal Links between FDI and Growth in Developing Countries. The World Economy, 29, 21-41.
  • Hayat, A. (2018). FDI and Economic Growth: The Role of Natural Resources?. Journal of Economic Studies, 45(2), 283-295.
  • Herzer, D., Klasen, S., Nowak-Lehmann, F. (2008). In Search of FDI-Led Growth in Developing Countries: The Way Forward. Economic Modelling, 25, 793-810.
  • Ilgun, E., Koch, K. J., Orhan, M. (2010). How Do Foreign Direct Investment and Growth Interact in Turkey?. Eurasian Journal of Business and Economics, 3(6), 41-55.
  • Johansen, S. (1988). Statistical Analysis of Cointegration Vectors. Journal of Economics Dynamics, and Control, 12(2-3), 231-254.
  • Kahramanoğlu, İ.E. (2009). Uluslararası Doğrudan Yatırımların Ekonomik Büyümeye Etkisi ve Ülkelerin Hazmetme Kapasitesi‐Türkiye Örneği, Hazine Müsteşarlığı Uzmanlık Tezi, 6800.
  • Mello, L.R. (1999). Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data. Oxford Economic Papers, New Series, 51(1), 133-151.
  • Ministry of Development of Turkey. http://www.kalkinma.gov.tr/
  • Nair-Reichert, U., Weinhold, D. (2001). Causality Tests for Cross-Country Panels: A New Look At FDI And Economic Growth In Developing Countries. Oxford Bulletin of Economics and Statistics, 63, 153-171.
  • Örnek, İ. (2008). Yabancı Sermaye Akımlarının Yurtiçi Tasarruf ve Ekonomik Büyüme Üzerine Etkisi: Türkiye Örneği. Ankara Üniversitesi Siyasal Bilgiler Fakültesi Dergisi, 63(2), 199-217.
  • Sayek, S. (2007). FDI in Turkey: The Investment Climate and EU Effects. The Journal of International Trade and Diplomacy, 1, 105-138.
  • Sengupta, P., Puri, R. (2018). Exploration of Relationship between FDI and GDP: A Comparison between India and Its Neighbouring Countries. Global Business Review, 21(1), 1-17.
  • Seyidoğlu, H. (2003). Uluslararası İktisat Teori Politika ve Uygulama, 15. Baskı, İstanbul: Güzem Can Yayınları.
  • Shawa, M.J. (2014). The Analysis of the Major Determinants of Foreign Direct Investment: Case of Tanzania. Journal of Economics and Sustainable Dev., 5(4), 112-119.
  • Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70, 65-94. Turkish Statistical Institute (TURKSTAT). http://www.tuik.gov.tr/
  • Umeora, C.E. (2013). Effects of Foreign Direct Investment (FDI) on Economic Growth in Nigeria. SSRN Working Papers, 1-14.
  • Umoh, O. J., Jacob, A. O. and Chuku, C. A. (2012). Foreign Direct Investment and Economic Growth in Nigeria: An Analysis of the Endogenous Effects. Current Research Journal of Economic Theory, 4(3), 53-66.
  • UNCTAD (2016). United Nations Conference on Trade and Development, Investor Nationality: Policy Challenges, World Investment Report, United Nations.
  • Xu, B. (2000). Multinational Enterprises, Technology Diffusion and Host Country Productivity Growth. Journal of Development Economics, 62, 477-493.

THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH IN TURKEY / Türkiye’de Doğrudan Yabancı Sermaye Yatırımları İle Ekonomik Büyüme Arasındaki İlişki

Year 2020, Volume: 4 Issue: 2, 409 - 420, 30.10.2020
https://doi.org/10.29216/ueip.785772

Abstract

Foreign direct investments (FDI) in Turkey expanded rapidly following the liberalization programme initiated in early 1980s. Turkey accomplished a record level in terms of its performance to attract FDI in post-2000 era. Foreign currency inflow, capital stock increase, employment generation, and technology transfer are among the benefits of FDI to host country. The most significant impact of FDI is contribution to host country’s economy through realizing production. This empirical study explores the relationship between FDI and economic growth in Turkey using time series analysis for 1980-2015 period. Johansen Co-integration test results demonstrated a positive long-run relationship between economic growth and FDI, and the effect was found as statistically significant. According to Granger causality test findings, there is bidirectional causality between economic growth and FDI. The results of this study imply that a positive change in level of FDI is likely to increase the production of goods and services in Turkey.

References

  • Alagöz, M., Erdoğan, S. ve Topallı, N. (2008). Doğrudan Yabancı Sermaye Yatırımları ve Ekonomik Büyüme: Türkiye Deneyimi 1992‐2007. Gaziantep Üniversitesi Sosyal Bilimler Dergisi, 7(1), 79‐89.
  • Alfaro, L., Chanda, A., Kalemli-Ozcan, S. and Sayek, S. (2004). FDI and Economic Growth, The Role of Local Financial Markets. Journal of International Economics, 64(1), 89-112.
  • Alıcı, A.A., Ucal, M.Ş. (2003). Foreign Direct Investment, Exports and Output Growth of Turkey: Causality Analysis. European Trade Study Group (ETSG) Fifth Annual Conference, Universidad Carlos III deMadrid, 1-17.
  • Antwi, S., Mills, E., Mills, G. and Zhao X. (2013). Impact of Foreign Direct Investment on Economic Growth: Empirical Evidence from Ghana. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(1), 18-25.
  • Arısoy, İ. (2012). The Impact of Foreign Direct Investment on Total Factor Productivity and Economic Growth in Turkey. The Journal of Developing Areas, 46(1), 17-29.
  • Aslanoğlu, E. (2002). The Structure and the Impact of Foreign Direct Investment in Turkey. Journal of Faculty of Economics at Marmara University, 17(1), 31‐50.
  • Assanie, N., Singleton, B. (2002). The Quality of Foreign Direct Investment: Does it Matter for Economic Growth?, Asia Pacific Research Centre and APRC Productivity Centre.
  • Balamurali, N., Bogahawatte, C. (2004). Foreign Direct Investment and Economic Growth in Sri Lanka. Sri Lankan Journal of Agricultural Economics, 6(1), 37-50.
  • Balasubramanyam, V. N., Salisu, M. Sapsford, D. (1996). Foreign Direct Investment and Growth in EP and IS Countries, Economic Journal, 106, 92-105.
  • Bani-Mustafa, A., Elian, M.I. and Sawalha, N. (2020). Revisiting the FDI-Growth Nexus: ARDL Bound Test for BRICS Standalone Economies. Modern Applied, Science, 14(6), 1-20.
  • Bhattarai K., Ghatak, S. (2010). FDI, Investment and Growth in OECD Countries, School of Economics, Kingston University of London, Economics Discussion Paper, 5, 1-17.
  • Borensztein, E., Gregorio, J.D. and Lee, J-W. (1998). How Does Foreign Direct Investment Affect Economic Growth?. Journal of International Economics, 45(1), 115-135.
  • Bosworth, B., Collins, S.M. (1999). Capital Inflows, Investment and Growth. Tokyo Club Papers, 12, 35-74. Carkovic M., Levine R. (2002). Does Foreign Direct Investment Accelerate Economic Growth?. Institute of International Economics Press, Washington DC, 195-221.
  • Central Bank of the Republic of Turkey (CBRT). http://www.tcmb.gov.tr/
  • Choe, J. I. (2003). Do Foreign Direct Investment and Gross Domestic Investment Promote Economic Growth?. Review of Development Economics, 7, 44–57.
  • Dickey, D. A., Jansen, D. W. and Thornton, D. L. (1991). A Primer on Cointegration With an Application to Money and Income. Federal Reserve Bank of St. Louis Review, 58-78.
  • Erçakar, R.F., Yılgör, M. (2010). Gelişmekte Olan Ülkelerde DYY-GSYİH İlişkisi: Panel Birim Kök ve Eş Bütünleşme Sınamaları. Finans‐Politik & Ekonomik Yorumlar, 47, 549, 31-38.
  • Ericsson, J., Irandoust, M. (2001). On the Causality between Foreign Direct Investment and Output: A Comparative Study. The International Trade Journal, 15(1), 1-26.
  • Falki, N. (2009). Impact of Foreign Direct Investment on Economic Growth in Pakistan. International Review of Business Research Papers, 5(5), 110-120.
  • Fortainer, F. (2007). Foreign Direct Investment and Host Country Economic Growth: Does the Investor’s Country of Origin Play a Role?. Transnational Corporations, 16(2), 41-76.
  • Granger, C. W. J., Newbold, P. (1974). Spurious Regressions in Econometrics. Journal of Econometrics, 2, 111- 120.
  • Granger, C.W.J. (1988). Some Recent Development in a Concept of Causality. Journal of Econometrics, 39(1-2), 199-211.
  • Hansen, H., Rand, J. (2006). On the Causal Links between FDI and Growth in Developing Countries. The World Economy, 29, 21-41.
  • Hayat, A. (2018). FDI and Economic Growth: The Role of Natural Resources?. Journal of Economic Studies, 45(2), 283-295.
  • Herzer, D., Klasen, S., Nowak-Lehmann, F. (2008). In Search of FDI-Led Growth in Developing Countries: The Way Forward. Economic Modelling, 25, 793-810.
  • Ilgun, E., Koch, K. J., Orhan, M. (2010). How Do Foreign Direct Investment and Growth Interact in Turkey?. Eurasian Journal of Business and Economics, 3(6), 41-55.
  • Johansen, S. (1988). Statistical Analysis of Cointegration Vectors. Journal of Economics Dynamics, and Control, 12(2-3), 231-254.
  • Kahramanoğlu, İ.E. (2009). Uluslararası Doğrudan Yatırımların Ekonomik Büyümeye Etkisi ve Ülkelerin Hazmetme Kapasitesi‐Türkiye Örneği, Hazine Müsteşarlığı Uzmanlık Tezi, 6800.
  • Mello, L.R. (1999). Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data. Oxford Economic Papers, New Series, 51(1), 133-151.
  • Ministry of Development of Turkey. http://www.kalkinma.gov.tr/
  • Nair-Reichert, U., Weinhold, D. (2001). Causality Tests for Cross-Country Panels: A New Look At FDI And Economic Growth In Developing Countries. Oxford Bulletin of Economics and Statistics, 63, 153-171.
  • Örnek, İ. (2008). Yabancı Sermaye Akımlarının Yurtiçi Tasarruf ve Ekonomik Büyüme Üzerine Etkisi: Türkiye Örneği. Ankara Üniversitesi Siyasal Bilgiler Fakültesi Dergisi, 63(2), 199-217.
  • Sayek, S. (2007). FDI in Turkey: The Investment Climate and EU Effects. The Journal of International Trade and Diplomacy, 1, 105-138.
  • Sengupta, P., Puri, R. (2018). Exploration of Relationship between FDI and GDP: A Comparison between India and Its Neighbouring Countries. Global Business Review, 21(1), 1-17.
  • Seyidoğlu, H. (2003). Uluslararası İktisat Teori Politika ve Uygulama, 15. Baskı, İstanbul: Güzem Can Yayınları.
  • Shawa, M.J. (2014). The Analysis of the Major Determinants of Foreign Direct Investment: Case of Tanzania. Journal of Economics and Sustainable Dev., 5(4), 112-119.
  • Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70, 65-94. Turkish Statistical Institute (TURKSTAT). http://www.tuik.gov.tr/
  • Umeora, C.E. (2013). Effects of Foreign Direct Investment (FDI) on Economic Growth in Nigeria. SSRN Working Papers, 1-14.
  • Umoh, O. J., Jacob, A. O. and Chuku, C. A. (2012). Foreign Direct Investment and Economic Growth in Nigeria: An Analysis of the Endogenous Effects. Current Research Journal of Economic Theory, 4(3), 53-66.
  • UNCTAD (2016). United Nations Conference on Trade and Development, Investor Nationality: Policy Challenges, World Investment Report, United Nations.
  • Xu, B. (2000). Multinational Enterprises, Technology Diffusion and Host Country Productivity Growth. Journal of Development Economics, 62, 477-493.
There are 41 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section RESEARCH ARTICLES
Authors

Sema Onaran 0000-0002-3249-0660

Raziye Selim 0000-0002-0277-1752

Publication Date October 30, 2020
Published in Issue Year 2020 Volume: 4 Issue: 2

Cite

APA Onaran, S., & Selim, R. (2020). THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH IN TURKEY / Türkiye’de Doğrudan Yabancı Sermaye Yatırımları İle Ekonomik Büyüme Arasındaki İlişki. Uluslararası Ekonomi İşletme Ve Politika Dergisi, 4(2), 409-420. https://doi.org/10.29216/ueip.785772

Recep Tayyip Erdogan University
Faculty of Economics and Administrative Sciences
Department of Economics
RIZE / TURKEY