Determinants of foreign direct capital investments in Türkiye

Foreign direct investment refers to the transfer of resources to another country through the purchase of a company existing by multinational companies or the creation of a new facility. One of the main reasons why multinational companies invest in other countries is that the investment will be more profitable than in their own country. However, the decision to be taken is not only about the level of profitability, but also about investment risks. These risks may vary depending on the country to be selected, time, economic and political characteristics. In this study, research on the determinants of foreign direct investment in Türkiye for the years 1980-2019 and based on the results obtained at the end of the research, the determinants of foreign direct investment in Türkiye, possible effects of foreign direct investment in Türkiye, The distribution of foreign direct investments directed towards countries and sectors will be mentioned. With this result, the historical development of foreign direct investment investments will be mentioned and the development of foreign direct investments in Türkiye will be examined. In order to determine foreign direct investment in Türkiye, the years 1980-2019 were taken as a basis, and this situation was tried to be explained with the VAR model, Johansen cointegration analysis and stationarity test. Within the scope of the study, annual data on gross domestic product, foreign direct investment, trade, inflation, openness rate, exchange rate and gross fixed capital formation were used and tried to be interpreted.