International Conference on Eurasian Economies
11-13 June 2019 – Famagusta, Turkish Republic of Northern Cyprus
Paper properties
Paper ID : 2247
Status : Paper published
Language : English
Topic : Growth and Development
Presenter: Mohamed Isse Ibrahim
Session : 3A Finance
Foreign Direct Investment as an Important Source of External Development Financing: New Evidence in Turkey
Foreign Direct Investment as an Important Source of External Development Financing: New Evidence in Turkey
- Mohamed Isse Ibrahim (İstanbul Commerce University, Türkiye)
Abstract
Foreign direct investment is a critical source of external instruments for financing development for Turkey, FDI can contribute to technology diffusion, Economic growth, Employment generation and Sustainable development. However; the Objective of this research is to examine whether foreign direct investment as an external source of financing effects economic growth in Turkey, based on time series data from 2003 to 2016 during the Erdoğan administration. This study employed Harrod-domar growth model using under OLS method. The paper considerate main variables foreign direct investment, Exchange rate and labor force. Based on empirically investigated the study confirmed that foreign direct investment and Labor force has a positive significant relationship to economic growth in Turkey while exchange rate has a negative significant relationship to economic growth in Turkey. So this paper recommends that movement of Turkey should promote policies encourage and creation of a good microeconomic and macroeconomic a friendly environment and utilization of the careful of loose monetary policy to economic performance.
JEL codes:
Ibrahim, Mohamed Isse (2019). "Foreign Direct Investment as an Important Source of External Development Financing: New Evidence in Turkey" in Proceedings of International Conference of Eurasian Economies 2019, pp.106-111, Famagusta, Turkish Republic of Northern Cyprus.
DOI: https://doi.org/10.36880/C11.02247
