Relationship between fdi on economi̇c growth: In Turkey

Liberal economic model has been adopted in 24 January 1980 decisions in Turkey. With this economic model, foreign direct investments have had a major impact on economic growth. In the study, the relationship between foreign direct investment and economic growth is examined for the period 1980-2018 for both short term and long term by ARDL Method and Toda- Yamamoto Causality test in Turkey. In the model the variables of GDP per capita, inflation, foreign direct investment inflow and current account are used as determinants of foreign direct investments In the short-term coefficient results, the inflation coefficient is not statistically significant. A statistically significant and negative relationship is observed between foreign capital inflows and economic growth. In the long term, %1 increase in direct foreign capital reduces economic growth by %- 3.79. In the short term, it is determined that %1 increase in current account balance, economic growth decreases by -1.91%. In the long run, inflation and current account balance coefficients are found to be statistically insignificant.