Foreign capital's to economic growth from 1980 to 2005 period of time: For instance Turkey

The transnational corporations that establish the foreign direct investment arebecoming more attractive day by day because of their important increasing roles oncountries? trade, capital collection and economic growth.The important factors that affect the entrance of foreign direct investment tothe country are economical and political instability. Within economical instabilityinflation, foreign trade debit, ambiguity in the markets are noticeable. In politicalinstability, continuously changing governments and military impacts play importantroles.Although there are many empirical studies in the World on whether foreigndirect investments have affects on the economic growth or not, there are not suchempirical studies in Turkey concerning that topic.The purpose of this study is to research whether there is a relationshipbetween foreign direct investments organized within the years 1980-2005 andeconomical growth by the help of Granger causality test.Results of this study show that; with a three quarter a year (six months) delay,foreign direct investments are the cause of Granger cause of GDP, this causerelationship weakens in three quarter a year (nine months), and discontinued in ayear. Moreover, it is found that GDP is not the Granger cause of foreign investments.