The Effect of Net FDI Inflow on Economic Growth in Turkey: An Application With Toda-Yamamoto Approach

The Effect of Net FDI Inflow on Economic Growth in Turkey: An Application With Toda-Yamamoto Approach

Dilek Temiz Dinç, Aytaç Gökmen
Copyright: © 2022 |Pages: 19
ISBN13: 9781799882589|ISBN10: 1799882586|ISBN13 Softcover: 9781799882596|EISBN13: 9781799882602
DOI: 10.4018/978-1-7998-8258-9.ch007
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MLA

Dinç, Dilek Temiz, and Aytaç Gökmen. "The Effect of Net FDI Inflow on Economic Growth in Turkey: An Application With Toda-Yamamoto Approach." Redefining Global Economic Thinking for the Welfare of Society, edited by Md Mashiur Rahman, et al., IGI Global, 2022, pp. 114-132. https://doi.org/10.4018/978-1-7998-8258-9.ch007

APA

Dinç, D. T. & Gökmen, A. (2022). The Effect of Net FDI Inflow on Economic Growth in Turkey: An Application With Toda-Yamamoto Approach. In M. Rahman, R. Goel, A. Gomes, & M. Uzzaman (Eds.), Redefining Global Economic Thinking for the Welfare of Society (pp. 114-132). IGI Global. https://doi.org/10.4018/978-1-7998-8258-9.ch007

Chicago

Dinç, Dilek Temiz, and Aytaç Gökmen. "The Effect of Net FDI Inflow on Economic Growth in Turkey: An Application With Toda-Yamamoto Approach." In Redefining Global Economic Thinking for the Welfare of Society, edited by Md Mashiur Rahman, et al., 114-132. Hershey, PA: IGI Global, 2022. https://doi.org/10.4018/978-1-7998-8258-9.ch007

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Abstract

Capital is one of the first and foremost requisites of economic development for every country in this world. However, not every country is given abundant capital. Foreign direct investment (FDI) occurs as a good cure to solve capital-related issues. In this study, the net FDI inflow and economic growth correlation was researched in Turkey for the period of 2010:1-2018:3 by employing quarterly data as well as applying the Augmented Dickey Fuller Test (ADF); Phillips-Perron (PP); Kwiatkowski, Phillips, Schmidt, Shin (KPSS); Elliott, Rothenberg, and Stock (ERS) Point Optimal; Ng-Perron Unit Root Tests; and Toda-Yamamoto Causality Tests. According to the findings of the study, there is a unidirectional causality running from net FDI to economic growth in Turkey.

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