The effect of foreign direct investments on economic growth: The case of Turkey (2002-2019)

In this study, effect of foreign investments which came in Turkey, between and 2012 and 2019 years to the economy has been examined as econometric. As a method, the vector error correction model has been applied. In this analyse, direct foreign investments, gross national product, interest rate, credit risk premium, number of unemployed people have been used as variable. The data set was taken from the Central Bank of the Republic of Turkey Electronic Data Distribution System. In this study, it has been found that 1 percent of interest in domestic country's risk premium caused to reduce 1,88 percent foreign investments in the long period. This stands out as a very important result for Turkey, a country having savings gap as well as 3 percent of national income, and also in need foreign source for investments and growing in the period of 2002-2019 years.