The relationship between international capital flows, foreign direct investment and economic growth in Turkey and selected countries

The lack of domestic resources in globalized economies led countries to seek foreign resources. Foreign direct investments have porsitive effects such as increasing employment, accelerating the acquisition of the new techonologies, creating a possitive effect on productivity and growth by increasing competition, contributing to international integration and imploving the balance of payments. Therefore, both developed and developing all countries make great efforts to attract direct foreign capital investments to their countries. In this study, first of all, the types of foreign direct investments the factors determining foreign direct investments and the effects of foreign direct investments have been examined. In the second part of the study, economic growth models and the relationship between international capital flows and economic growth were mentioned. In this respect, panel data analysis was done by using the data of gross domestic product, foreign direct investment, gross domestic savings, exports and portfolio investment of Argentina, Brazil, China, Korea, Mexico, Russia, South Africa, India and Turkey between the years in 2000-2017. As a result of the study, a two-way causality relationship between foreign direct investments and economic growth was determined in the long run. A significant relationship was found between economic growth and export, gross domestic savings and foreign direct investment variables. Relationship where there is no between portfolio investments and economic growth.