A panel data investigation on direct foreign investment

Foreign direct investment (FDI) takes very important place in Turkish economy. In this study, the amount of demand for investment from other countries was modeled in order to asses the factors effecting the mentioned investments. With this study, the variables considered affecting the amount of direct foreign investment to Turkey were evaluated.For this reason, real Gross Domestic Product, interest rates and election years were separately analyzed. Additionally, seven countries (France, Netherland, Grmany, USA, England, İtaly, Canada) which are considered influential in managing direct foreign investment and have complete data for working period of 1998?2007 were particularly evaluated.In this study is used the panel data approach which is become important recently. This approach is come into existence of time series and cross-section data. Therefore, it is going to demolish the autoregressive process. With this way our guesses are going to be effective and reliable. Thus, it will be easier to have a response when a time series or a cross section data can not be able to a sufficient reply.