The effects of foreign direct investments and economic freedoms on the economies of G-20 countries

This research comprehensively examined the impact of foreign direct investments (FDI) and economic freedoms on economic growth in G-20 countries (except Argentina). In this context, various econometric analyzes were carried out on a large data set using SPSS statistical analysis software. These analyzes cover a variety of methods such as descriptive statistics, inter-variable correlations, Variance Inflation Factor (VIF) analysis, Extended Mean Group (AMG) estimator, and cross-sectional dependence testing. Our study revealed that foreign direct investments and economic freedoms do not have a significant impact on the economic growth of G-20 countries. This result was supported by descriptive statistics and intervariable correlation analyses. In particular, significant effects of trade volume and inflation on economic growth have been identified in some G-20 countries, indicating that trade and price stability play important roles on economic performance. In the multiple regression analysis, VIF values showed that there was no multicollinearity, indicating that it was at a level that would not affect the accuracy of the model. AMG estimator results showed that trade volume and inflation had significant effects on the economic growth of some G-20 countries, but a significant effect of foreign direct investments and economic freedoms was generally not observed. The cross-sectional dependency test revealed that there is a high level of dependency among G-20 countries in terms of economic events and conditions. The results of the research show that foreign direct investments and economic freedoms have a limited impact on the economic growth of G-20 countries, while trade volume and inflation have more pronounced effects in certain cases. These findings may be useful in developing economic policies and strategies and require countries to consider other factors that influence economic growth. These analyzes show that the overall fit of the model is statistically significant, indicating that the model used is generally appropriate. Keywords: Foreign direct investments, Economic freedom, Economy G-20 countries