Foreign direct investment in a globalizing world and its impact on Turkey

ABSTRACTMaster ThesisForeign Direct Investment In A Globalizing World and Its Impact On TurkeySerap KUDUĞDokuz Eylul UniversityInstitute Of Social SciencesDepartment of EconomicsIn the first part the terms ?globalisation? and ?foreign directinvestments? has been identified and the globalisation process in the worldhas been evaluated according to different approaches. The reasons andbenefits of foreign direct investments have been researched. Furthermore,theoratical approaches aimed to explain foreign direct investments have beenstudied.In the second part historical development of foreign direct investmentsin Turkey and among the world has been stuied. This historical process hesbeen divided in to two eras as, ?before 1980? and ?after 1980?.In the last part, the relation between incoming foreign direct investmens andgross national produst has been questioned, in the light of previous ampiric studies inthe literature, exercising datas of Turkey between 1980 and 2005. The reason ofstudying the datas after 1980 is due to the lack of previous datas. The methods of thestudy are Granger Nedensellik Test, Engle-Granger Coentegration test and JohansenCoentegration Model. Engle-Granger Coentegration Test and Johansen CoentegrationModel has showed that there is a corellation between variables in the long term. AndGranger Causality Test has showed that there is a directional Granger Causation fromForeign Direct Investments to Gross Domestic Product.Key World: 1) Globalization, 2) Foreign Direct Investmens , 3) Turkish Economy,4) Coentegration, 5)Causality Tests