International Conference on Eurasian Economies
4-5 November 2010 – Istanbul, TURKEY
Paper detail
Paper ID : 149
Status : Paper published
Language : English
Topic : Growth and Development
Presenter: Asst. Prof. Dr. Elçin Aykaç Alp
Session : 3B Growth & Development
Effects of Foreign Direct Investment on Growth in Turkey
Effects of Foreign Direct Investment on Growth in Turkey
- Prof. Dr. Melike Bildirici (Yıldız Technical University, Türkiye)
- Asst. Prof. Dr. Elçin Aykaç Alp (Okan University, Türkiye)
- Dr. Fazıl Kayıkçı (Yıldız Technical University, Türkiye)
Abstract
This study aims at analyzing the relationship between Foreign Direct Investment and Growth in Turkey by using Threshold Cointegration. As the studies about the impact of Foreign Direct Investment on growth are surveyed, it is seen that all of them uses liner methods except two. Starting point of these studies that use liner methods are the positive relationship between Growth and Foreign Direct Investment. As such, Yılmaz and Barbaros (2006) find positive relationship between Foreign Direct Investment and market size in Turkey between 1980 and 2001. Erdal and Tatoğlu (2002) reach the same conclusion for the period of 1980-1998 by using real Gross Domestic Product as a proxy for market size. Deichmann, Karidis and Sayek (2003) find positive linkage between Foreign Direct Investment and Gross Domestic Product in Turkey by using Conditional Logit Model. Bildirici and Bozoklu (2008) find positive relationship between growth and Foreign Direct Investment by using Markov Switching Vector Auto Regression method. Katırcıoğlu (2009) analyses the connection between Foreign Direct Investment and economic development by using Auto Regressive Distributed Lag and indicates that economic development causes net Foreign Direct Investment. Darrat and Sarkar (2009) state the affirmative effects of the Foreign Direct Investment on growth as expected theoretically. Bildirici, Bozoklu (2008) find positive relationship between growth and Foreign Direct Investment in Turkey. Bildirici, Alp and Kayıkçı (2010) state the existence of threshold effect for these variables. This study intends to research this effect in historical perspective, using Threshold Cointegration Analysis.
JEL codes: C32, F21, F43
Bildirici , Melike, Aykaç Alp, Elçin, Kayıkçı, Fazıl (2010). "Effects of Foreign Direct Investment on Growth in Turkey " in Proceedings of International Conference of Eurasian Economies 2010, pp.191-200, Istanbul, TURKEY.
DOI: https://doi.org/10.36880/C01.00149
Session 3B: Growth & Development
