The effect of direct foreign investment on foreign trade in Turkey: 1980-2012

As Capital movements increase nowdays, the effect of direct foreign capital investment (DFCI) became an important matter of discussion. The conclusion gained from trend of foreign capital investment is that; Direct investment is the most preferred type of trend of private foreign capital in terms of growing target. Direct foreign capital investment is preferred trend for both developing and developed countries. However; it is matter of debate that what kind of effects direct foreign capital investment has on foreign trade. It needs to be searched that the effect of direct foreign capital investment on history of Turkey. In this study; we try to tell the type and description of direct foreign capital investment as theoretical. Then we focuc on historical evolution of direct foreign capital investment on Turkey. In addition we approach to growth of Turkish Foreign Trade. Finally we try to find out the effect of direct foreign capital investment with the aid of econometric model. Key Words Economic Grasht, Foreign Direct İnvestment, Foreign Trade