Foreign direct investments effects on employment. 1970-2005 an application on the Turkey

In todays world, less developed and developing countries and trying to catch up the developed countries by mostly using their own resources. Economic growth and development are connected to continuous investment, stable low inflation and low unemployment. High inflation and unemployment rates, financial system instabilities have forced the goverments of less developed countries to find solutions inside and outside of their countries. Liberalization and opennes has accepted to reach outside sources. In the respect, globalization is pushing the companies to became multinational ones. Not only local sources for investment but also global sources became a must for investment. This development brings yhe importance of foreign direct investment to the economics literature.Recently when globalization process continues some financial and economical crises happened. These crises have affected the volume of foreign direct investments. However the long term trend of these investments is upward in the whole world. Nowadays , foreign direct investment becomes a major source for developing countries. In this study the main field is foreign direct investment and that?s why just basic definitions of investment are used here.In the part of this study, definitions, scope, theories, effects and results of foreign direct investment are given.A brief historical information is explained in the foreign direct investment in Turkey.In the second part, the term ?employment?is explained and then theories and types of employment are studied.In the third and last part of this study, the relationship between foreign direct investment and employment level is analyzed by using the Turkish data from 1970 to 2005. Simple regression technique is used for analyses. A positive relation s found from employment level and income to foreign direct investment.