International capital flows to developing countries and macroeconomics instability

Economies of countries require savings to reach a stable developed economic level. The greatest obstacle to the improvement of developing countries is insufficient saving. In order to eliminate the insufficient savings, they have gone to liberalization of financial markets, since the 1980s have gone.Turkey initiated a long lasting structural adjustment programme in the 1980?s. Turkey also liberalised for reaching own economic development by releasing capital flows by decree no.32 in 1989. In spite of this, Turkey didn?t take a lot of foreign capital.So, the purpose of this study is also to evaluate the capital movements in our country and developing countries by examining multi-dimensional perspective and to investigate whether the foreign funds are financing source for the developing countries or not.Keywords: Developing Countries, International Capital Flows and Macroeconomics Instability