International Conference on Eurasian Economies
18-20 June 2018 – Tashkent, UZBEKISTAN
Paper detail
Paper ID : 2163
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Assoc. Prof. Dr. Mustafa Batuhan Tufaner
Session : 4B Dış ticaret
An Econometric Analysis on the Relationship between Foreign Trade and Foreign Direct Investment in Turkey
Türkiye’de Dış Ticaret ve Doğrudan Yabancı Yatırım İlişkisi Üzerine Ekonometrik Bir Analiz
- Prof. Dr. Özgür Ömer Ersin (Istanbul Commerce University, Türkiye)
- Assoc. Prof. Dr. Mustafa Batuhan Tufaner (Istanbul Beykent University, Türkiye)
Abstract
The globalization process has accelerated the liberalization of foreign trade and capital movements. This acceleration is caused in widening and intensifying relations between foreign direct investment and foreign trade. This paper examines the foreign direct investments’ contribution to the foreign trade. The empirical study is based on time series analysis for Turkey and used monthly data over the period 1992-2017. Econometric techniques for time series are applied to test unit roots, Johansen cointegration test, ARDL bound model and Granger causality test. The test results indicate that there is a correlative relation between foreign trade and foreign direct investment. As a result foreign trade affects foreign direct investments.
JEL codes:
Ersin, Özgür Ömer, Tufaner, Mustafa Batuhan (2018). "An Econometric Analysis on the Relationship between Foreign Trade and Foreign Direct Investment in Turkey" in Proceedings of International Conference of Eurasian Economies 2018, pp.196-206, Tashkent, UZBEKISTAN.
DOI: https://doi.org/10.36880/C10.02163
