The effects of foreign direct investments towards developing countries' economic growth: Samples of Turkey, Brazil, Argentina

The aim of this dissertation is to analyze the effect of foreign direct investments which are specific type of international capital flows, on the economic growth of developing countries. In accordance with this purpose, Turkey, Brazil and Argentina which are included in class of developing countries, are chosen as sample countries. Time-series analysis has been used in this dissertation which involves in periods from 1970 to 2016. Just as these countries have similar economical experiments during the period mentioned earlier, these countries are evaluated under the same economical classifications by various institutions such as World Bank (WB), Organisation for Economic Co-operation and Development (OECD), United Nations (UN) and International Monetary Found (IMF) as well. Therefore these factors have facilitated analyzing these countries comperatively and evaluating them and also they have influence that choosing these countries as sample in this dissertation. This dissertation has been analysed in three sections. In the first part, after the introducing conception of frameworkthat related to foreign direct investments, the economical factors that effect the foreign direct investment and the impacts of foreign direct investments on the economies which mentioned, have been explained. In the second chapter, historical development process of foreign direct investment accross the globe, in developing countries and in Turkey, Brazil and Argentina concerned as sample, have been scrutinized. In the third part of dissertation, time- series analysis which involves period of 1970-2016 has been conducted in order to ascertain the impacts of foreign direct investments on economic growth of Turkey, Brazil and Argentina. Analysis result of Turkey indicates that there is no relationship which is statistically significant between foreign direct investments and economic growth. However analysis results of Brazil and Argentina have proved that there are long-term relationship between foreign direct investments and economic growth for Brazil and Argentina. Both economic impacts that are revealed by foreign direct investments from past to present and econometric analysis' results that have been asserted, strengthened the assertions that the ascending importanceof such investments in order to provide economic growth in developing countries and still have an important role in economies of countries. Keywords: Foreign Direct Investment, Developing Countries, Economic Growth, Gross National Product.