The effect of foreign direct investment on employment: Turkey case

Since developing countries do not use their domestic financial resources effectively and produce radical solutions for the problem of employment, Foreign Direct İnvestment (FDI) has become an importnant external financing source for these countries. The main purpose of this study is to investigate the effects of FDI on the employment in Turkey. Using dâta from The World Bank, employment function estimated for the 1990-2016 period. Despıte a lot of study in literatüre for he ımpact of FDI on the employment, there is not a consensus how employment affected: positive or negative. How FDI affect the employment may differ according to the political and economic situation in a country. According to the study results that found by using Time Series there is a relationship betwen FDI and employment. Therefore, ın terms of Turkey the most critical point for increasing the effect of foreign dircet investment on the employment is that, the FDI should be directed towards the industries or production sectors and the necessary advantages must be provided. Keywords: Foreign Direct Investment, Employment, Time Series Analysis,