The effect of direct and indirect investments on eonomic growth in BRICS-T countries

It is known that since the middle of the 19th century, foreign capital investments have a large share, especially in the economies of developed countries, and researches on foreign capital investments have increased. It is another well-known judgment that direct and indirect foreign capital investments are of great importance in the economic growth of developing countries. From the point of view of the global economy, it is known that foreign direct and indirect investments are of great importance for both developed and developing countries, and it is known that they compete in attracting foreign capital investors to their own countries. It is seen that BRICS-T countries attract attention around the world with their economic growth rates. Thus, the prediction that BRIC (Brazil, Russia, India and China) countries will form the G6 together with the United States and Japan in 2050 with their dense population and high growth rate is among the judgments known to accelerate the studies on these countries. The Russian economy is one of the countries with a great advantage in the world position due to the richness of natural resources, high employment, high education level, low public debt and military technology. India's economy is the seventh largest in the world in nominal terms of purchasing power. While India continues its high economic growth steadily, it is the world's eighth largest exporter and tenth largest importer of business services. With its strategic policies towards industrialization and foreign trade, the Chinese economy has become the world's second largest export-based economy. China is in a very important position in global trade with its reforms that have greatly increased its commercial activities. South Africa is a country with significant maritime transport. Despite the large amount of arable land in South Africa, the share of agriculture in national income is low. The South African country exports gold, diamonds, platinum, iron, auto parts and steel. Turkey has geostrategic power as it is located on important sea and land trade routes and connects the Asian and European continents. It exports motor vehicles, mechanical machinery and machinery equipment and their parts and white goods. Among the BRICS-T countries, the GDP ratios of China, India, Russia and Brazil are increasing steadily. Even though Russia and Brazil experienced a decrease in their GDP ratios after 2014, they have a higher GDP ratio than Turkey. Countries other than China and Russia run foreign trade deficits. While Turkey experiences fluctuations in price stability, stability is generally provided in BRICS countries. While China, India and Russia draw attention with their low unemployment rates, Turkey and Brazil are in the second place among these countries in low unemployment rate after South Africa. In this study, it examines the effect of direct and indirect investments of BRICS-T (Brazil, Russia, India, China, South Africa and Turkey) countries on economic growth. In order to reveal the extent to which direct and indirect foreign investments affect the economic growth of BRICS-T countries, the data of direct and indirect foreign investments and economic growth rates of these countries between 1999-2018 were analyzed from the World Bank database. In the analysis method, the stationarity of the series was tested using the second-generation panel unit root test due to the cross-section dependence found in the 1999-2018 data. The ARDL model was applied to stationary series of varying densities and short- and long-term relationships between variables were tested.