Effects of the foreign direct investments on economic growth: An empirical analysis for transition economies

Movements of foreign direct investments which accelerated after second half of the 20th century have had positive or negative influences on country economy. These impacts can show changes according to the purpose or form of the investments and can be changed in respect of the economic structures or policies of the countries. But, common opinion is that foreign direct investments have positive effects on economic growth and development by causing increase of capital level and productivity gain. For this reason, many countries have started to apply emceeing policies that receive foreign direct investment. In this survey, the datas belong to years of 1996-2018 were chosen by using panel data analysis on effects of foreign direct investments on transition economies. As a result of the analysis, it is concluded that foreign direct investments affect economic growth favorably and significantly.