Evaluation of investment incentives, factors affecting foreign direct investment, for Turkey

In recent years, the importance of econometric studies examining the relationships between foreign direct investments and investment incentives in the context of Türkiye's economic progress and structural changes has increased. In this context, this study aims to analyze the impact of foreign direct investments on the economy and the role of investment incentives by focusing on Türkiye from 2006 to 2023. In this study, the relationship between investment incentives and credit default swaps with direct foreign investments in Türkiye during the period 2006-2023 is examined using a Nonlinear Autoregressive Distributed Lag (NARDL) analysis with quarterly data. The data are obtained from the Central Bank of the Republic of Türkiye, the Ministry of Industry and Technology, and investing.com databases. The study identifies a long-term causality relationship between direct foreign investments, investment incentives, and credit default swaps.