This study aims to examine the effect of foreign direct investment on competitiveness using time series analysis. For this purpose, the autoregressive distributed lag (ARDL) model based on the least squares method is applied due to the variables with different integration orders. The study covers quarterly data from the manufacturing sector of Turkey for the period 2005Q1-2019Q4. The competitiveness as the dependent variable is calculated according to the revealed comparative advantages. In addition, the model includes foreign direct investment, real effective exchange rate, and productivity series as explanatory variables. All time series are seasonally adjusted with TRAMO/SEATS method. The main result of the study shows that foreign direct investment does not have a significant effect on competitiveness in both the short and long term. This finding may indicate that foreign direct investments in the manufacturing industry in Turkey are investments in the form of mergers and acquisitions directed to the domestic market. Therefore, policymakers should plan foreign direct investment as an efficient technology transfer channel.
Foreign Direct Investment Competitiveness Revealed Comparative Advantages ARDL Model
Birincil Dil | Türkçe |
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Bölüm | Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
Yazarlar | |
Yayımlanma Tarihi | 30 Eylül 2022 |
Gönderilme Tarihi | 17 Ağustos 2021 |
Yayımlandığı Sayı | Yıl 2022 Cilt: 40 Sayı: 3 |
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