International Congress on Eurasian Economies
26-28 June 2024 – Bishkek, KYRGYZSTAN
Paper properties
Paper ID : 2502
Status : Paper published
Language : English
Topic : Growth and Development
Presenter: Prof. Dr. Neşe Algan
Session : 6A Growth & Development
The Impact of Foreign Direct Investment on Poverty Reduction in Turkey: A Time Series Analysis
The Impact of Foreign Direct Investment on Poverty Reduction in Turkey: A Time Series Analysis
- Prof. Dr. Neşe Algan (Çukurova University, Türkiye)
- Prof. Dr. Harun Bal (Çukurova University, Türkiye)
- Ph.D. candidate Murat Bayraktar (Çukurova University, Türkiye)
Abstract
Foreign direct investment can be outlined as the net inflows of investment to take possession of permanent management. Foreign direct investments can support poverty alleviation especially for developing countries which needs capital. Global foreign direct investment sums $1.5 trillion in 2019 decreased to a calculated $859 billion in 2020 as the UNCTAD report indicates. Foreign direct investment flows are expected to remain weak with uncertainty due to Covid-19. For almost 25 years, extreme poverty, was steadily declining, on the contrary, expected to rise in 2020 between 88 million and 115 million added as the disruption of the Covid-19 on the global supply chain due to lockdowns. Time series analysis of foreign direct investments and poverty reduction relationship for Turkey between the 1996-2019 period confirms that foreign direct investment net infows reduce poverty: %1 increase of FDI inflow to Turkey increases % 0.011 of household final consumption which used as proxy for poverty. Turkish policymakers should develop an appropriate economic environment to appeal as much as foreign direct investment to Turkey.
JEL codes: F21, F23, P46
Algan, Neşe, Bal, Harun, Bayraktar, Murat (2021). "The Impact of Foreign Direct Investment on Poverty Reduction in Turkey: A Time Series Analysis" in Proceedings of International Conference of Eurasian Economies 2021, pp.175-183, Istanbul, TURKEY and ONLINE.
DOI: https://doi.org/10.36880/C13.02502
Session 6A: Growth & Development
