An increase in foreign direct investment inflows will ultimately cause an increase in total output in the long-run.
Published in Chapter:
Evaluating Different Growth Strategies: The Case of Turkey
Adem Gök (Kirklareli University, Turkey) and Deniz Güvercin (University of Lincoln, UK)
Copyright: © 2023
|Pages: 20
DOI: 10.4018/978-1-6684-5976-8.ch012
Abstract
Analyzing Turkey over 2005: Q1-2017: Q4 period by ARDL approach, the study examines the growth performance of export-led, FDI-led, consumption-led, FPI-led, and investment-led strategies. The study also examines the impact of these growth strategies on various macroeconomic indicators including inflation, unemployment, and exchange rates. Results indicate that consumption-led growth strategy increases growth and unemployment without exerting statistically significant effects on any other indicators. FDI-led growth strategy positively contributes to economic growth, employment, inflation, and trade deficit. Export-led growth strategy positively contributes to economic growth, employment, external debt, and inflation. Investment-led growth strategy does not affect economic growth and employment but positively affects trade deficit and external debt. FPI-led growth strategy decreases economic growth, does not generate employment, and decreases inflation, external debt, and trade deficit.