The effects of foreign direct investment on economic growth: The Application of Turkey

Between the years 1996-2018 are studied in this thesis, the effects of the economic growth of direct foreign investments in Turkey. The study consists of three parts. In the first part, the definition and importance of foreign direct investments are mentioned and foreign investment determinants are mentioned. The theoretical approaches to explaining foreign direct investment as well as the dynamics of economic growth within the theories of growth are explained. In the second part, firstly, analysis is made on the basis of indicators for the development of foreign direct investments in the world. Foreign investment policies followed for periods as Turkey is done by taking out an assessment of foreign direct investment indicators. In the third part, information about method, data set and econometric model is given. Estimation results are evaluated by estimating the model used in the study. The aim of this study is to investigate the effects of foreign direct investments on economic growth in the related years. In this study, time series analysis was performed with Least Squares (OLS) method. According to the results of the analysis; the effect of gross fixed capital investments and foreign direct investment outflows on economic growth gives meaningful results. Keywords: Foreign Direct Investments, Economic Growth, Time Series Analysis