Effect of foreign direct investment on domestic investments in Turkey: 1980 - 2008

Located within the world ecenomy and that this period is called globalization, have caused the removel of obstacles on good and services trade and capital movements , and whole the world was affected positively or negatively because of this situation.In this study, FDI?s progress and development over the years in Turkey and worldwide, also which sectors and provinces in Turkey FDI?s in the most intensitive studied. FDI on domestic investment was focused on the effects of crowding ? in and crowding ? out. Besides using the Cointegration Approach of FDI were found to positively influence on domestic investment.Key Words1.Foreign Direct Investment (FDI)2.Foreign Direct Investment on the World and on Turkey3.Crowding ? out effect4.Crowding ? in effect5.Cointegration