Foreign Direct Investment (FDI) and Export Relation in Turkey: 1991–2010

Abstract

Foreign direct investment (FDI) is an important element in development of economic power with regard to growth. FDI is an efficient tool to transfer new technologies, managerial skills, knowledge, capital flow and so on. On the other hand, exportation is another means to integrate the economy of a country with that of the world and secure economic growth as well enhancing economic advantages.In this article, we attempt to research the relationship between FDI and export. The article begins with the definition of FDI theory, explains the motives fostering FDI, FDI and Turkey, FDI and export relation theoretically, and concludes with an empirical analysis of FDI and export in Turkey.The empirical research investigates the relationship between export and FDI by using monthly time series data for the Turkish economy over the period from December 1991 to October 2010. The study applies of the following econometric techniques: unit root test, Johansen cointegration test, vector error correction model (VECM), and Granger causality test. The cointegration analysis suggests long-run equilibrium relationship between the examined variables. The results of the Granger causality test showed a causal relationship between these variables. The causality results are consistent with the results reported by the vector error correction model (VECM).

Changing Trends in Outward Foreign Direct Investment of Turkish Companies

“…While the other CEE countries opened their economies to foreign direct investment in the 1990s, it started in Turkey since the post-war period. The FDI inflows that averaged around USD 0.8 billion in 1990-2000 reached USD 9.8 billion in 2005 and further grew to USD 20 billion in the year 2010 which was around 5.1% of GDP (Temiz & Gökmen, 2009). Further, the factors such as political stability, sturdy economic growth, and banking and public sector reforms have put Turkey in the spotlight as the attractive destination for foreign direct investment (Revoltella, 2011).…”

Competitive Strategy, Uncertainty, and Performance: An Exploratory Assessment of China and Turkey

“…Its application did not gain widespread acceptance until the 1980s (Akgemici, 2007;Dinçer, 2003). Presently, strategy concepts are common in Turkish organizations, many of which have planning horizons of five years or greater (Dinçer & Tatoglu, 2002;Dincer et al, 2006;Eren, Aren, & Alpkan, 2000;Temiz & Gokmen, 2011). As a substitute for arranging strategic plans at certain intervals, some Turkish organizations have adopted a continuous approach to the process (Barca, Karayormuk, & Köseoglu, 2006), and many others have departments solely committed to strategic planning (Eren et al, 2000).…”

The Impact of International Trade on Economic Growth: A Case Study of Pakistan

“…Further he likewise discovered some observational confirmation that the long haul pattern may not be sends out drove growth in India. Temiz and Gökmen (2011) examined the relationship of genuine send out and economic growth which was spoken to by genuine GDP by utilizing time arrangement information for the period 1950-2006 for Turkey. This examination utilizes acclaimed ADF unit root test, Johansen co-incorporation test, VECM, and Granger causality test.…”