THE CAUSALITY RELATIONSHIP BETWEEN ECONOMIC GROWTH AND FOREIGN DIRECT INVESTMENT IN TURKEY

Yıl 2008, Sayı: 20, 1 - 9, 01.08.2008

Muharrem Afşar

Öz

The aim of this study is to explore the causality relationship between Foreign Direct Investment and economic growth in Turkey, which has liberalized foreign capital inflows especially after 1980s. Granger causality analysis was used in order to test the hypotheses about the presence of causality between Foreign Direct Investment and Economic Growth. The study, which used the quarterly data covering the period between 1992:1 and 2006:3, showed causality relationship from Foreign Direct Investment to Economic Growth in Turkey. In other words, there is a one-way relationship between Foreign Direct Investment and Economic Growth and the direction of this relationship is from Foreign Direct Investment to Economic Growth

Anahtar Kelimeler

Foreign Direct Investment, Economic Growth, Granger Causality Analysis

Kaynakça

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