DOĞRUDAN YABANCI YATIRIMLAR, EKONOMİK BÜYÜMEYE ...

ABSTRACT
FOREIGN DIRECT INVESTMENTS, ITS EFFECTS ON ECONOMIC
GROWTH AND TURKISH CASE
Onur DEMİREL
Süleyman Demirel University, Department of Economics, Master Thesis, 153 Pages,
September 2006
Supervising Professor: Prof. Dr. Ömer EROĞLU
The world enters to a new epoch with the globalization of foreign trade,
capital, production and human being. The transition, while steered by the developed
countries, affects not only the developed countries but also the developing countries.
A decision of any individual country may have extensive consequences on the rest of
the world.
The study aims to analyze foreign direct investment (FDI) in the
aforementioned epoch of interaction. In this context the definition, statistical
methods and types of FDI, FDI and growth theories, the determinants of FDI are
analyzed, FDI statistics for the world and Turkey are examined, the Turkish laws for
FDI are examined and lastly by examining the effects of FDI on economic growth an
econometric modeling is run on Turkish case.
In the Turkish case, macroeconomic modeling with three stage least squares
(3 SLS) technique is used. As the result of FDI determinants regression the one
period lagged GDP, GDP growth rate, inflation rate, one period lagged public
expenditure to GDP rate and domestic saving rate are found to have positive effects
on FDI. Among the variables analyzed one period lagged GDP has the most
significant effect on FDI.
Growth regression on the other hand indicates positive relationship between
FDI, export growth rate, other capital inflows, foreign aid inflows and GDP growth.
As a consequence, FDI inflows accelerate economic growth in Turkey.
Keywords: Foreign Direct Investment (FDI), FDI Theories, Growth Theories,
Determinants of FDI , FDI Statistics in the World and Turkey, Effects of FDI on
Economic Growth, Case of Turkey, Three Stage Least Squares Technique (3 SLS)