Impact of foreign direct investment on employment in Turkey

International capital movements have gained importance along with the process of globalization in the world. In particular, the fact that the developing countries have been having difficulties in obtaining funds to finance their investments, and that the foreign direct capital provides a great advantage to the countries that suffer from the shortage of resources, have pushed the countries to spend effort in the direction of gaining these investments. Foreign direct capital investment, even though this issue is discussed extensively, is one of the types of investment that is considered to have contributed in many ways to the country's economy in general. In parallel with the theory, it is expected that the effect of the foreign direct capital investments on employment and economic growth will be positive. Yet, it has been seen that Turkey has succeeded in attracting these investments in the recent years. However, the contribution of these investments on the employment is precarious. Therefore, in this study, we also aimed to determine the effect of the foreign direct investments on the employment in Turkey. For this purpose, the Vector Autoregressive (VAR) model was created within the scope of Time Series Analysis, and the effect of direct foreign capital investments on employment was tried to be tested and investigated for the time period between 1988 and 2016 by using the Foreign Direct Investments Capital, Gross Domestic Product, Exchange Rate, Import, Export, Employment and Unemployment variables.