Forei̇gn di̇rect investments growth effect: The case ofTurkey

The study was to determine the effect on the growth of Foreign Direct Investment in the Republic of Turkey. At the same time, the theoretical foundations of FDI and economic growth are examined. In this context, the issue of the effect on the growth of Foreign Direct Investment in Turkey are being investigated by considering. The aim of the study period 2010-2020, with economic growth as represented by GDP, FDI inflows in Turkey (FDI) is to examine the interaction between. For this, annual data from 2010 to 2020 were used. Economic growth (GDP) and foreign direct investment (FDI) data set was obtained from Turkey Statistical Institute data bank. Firstly, the augmented Dickey-Fuller test was used to determine the stationary order of variables. Then, Johansen cointegration test and Granger causality test were applied to analyze the relationship between economic growth and foreign direct investment. To achieve the purpose of the study, the following issues should be addressed: Definition of Foreign Capital, Analyzing Historical Development and Its Types, Investigating the Definition of Foreign Capital Investment, Analyzing Foreign Direct Investment Theories, Investigating Foreign Direct Investment Methods, Determining the Effects of Direct Foreign Capital Investments, Examining the Basic Concepts of Growth, Foreign Direct Investment in Turkey, for example, the analysis of the effects of Growth Capital The research consists of three parts. In the first part, the definition of Foreign Capital, Its Historical Development and Types, Definition of Foreign Capital Investment, Theories of Foreign Direct Investment, Methods of Direct Foreign Capital Investments to a Country, Basic concepts on the Effects of Foreign Direct Investments are discussed. In the second chapter, Basic Concepts of Growth and Growth in Theoretical Perspective are examined. In the third chapter, Growth Effects of Direct Foreign Investment, Foreign Direct Investment has been made of the impact on growth of the evaluation analysis in Turkey, for example. In this study, first, the augmented Dickey-Fuller test was used to determine the stationary order of variables. Then, Johansen cointegration test and Granger causality test are used to analyze the relationship between economic growth and foreign direct investment. Keywords: FDI, economic growth, capital, investment