Crises and its impact on total investments in Turkey

Although the depth and length of the waves have changed, the crises have become permanent. Total investments are among the indisputable effects of the crises. Total investments are vital, especially for developing countries. The aim of this study is to question the effects of the crises on total investments in Turkey, which has a fragile economic structure due to the current account deficit and funding concerns. For this purpose, growth and inflation data and total investment data, which are the important indicators of the crises, were taken and analyzed. Data refer to the period 1980-2019. Augmented Dickey-Fuller (ADF) Unit Root Test, KPSS Stationarity Test, Lee and Strazicich Unit Root Test with Breakage were performed and Regression Analysis was applied when the variables were found to be stationary at the level. As a result of the analysis, it was determined that the growth and inflation rate were statistically significant in explaining the changes in the total investment volume. In addition, it has been determined that the increases in the growth rate increase the volume of investments by increasing the total investments, while the inflation rate decreases the total investments. According to this; a one-unit increase in growth brings about 0.01-unit increase in total investments, and a 1% increase in inflation brings about a 0.09% decrease in total investments. Knowing these effects is important in terms of taking the necessary precautions and designing the necessary policies in order to minimize the effects of the crises on investments. The study is also a contribution to typology.