The Relationship Between FDI and Economic Growth in Developing Countries

Okuyan, H. Aydın; Erbaykal, Erman

doi:10.5455/ey.10665

Cited by 8 publications

(5 citation statements)

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“…In this study, the existence and direction of a relationship among foreign direct investments, export and gross domestic product were tested on 44 selected developing countries. The causality results obtained via the Dumitrescu-Hurlin Panel Causality Test method indicate the existence of a two-way relationship among the variables, and this agrees with the results of previous studies (Ekanayake 1999;Lensink and Morrisey 2001;Zhang 2001;Razin 2002;Chowdhury and Mavrotas 2005;Okuyan and Erbaykal 2008…”

Section: Resultssupporting

confidence: 90%

“…Some studies in the relevant literature are the following: Berthelemy and Demurger (2000), China, the most influential factor on growth is foreign direct investment; Lensink and Morrisey (2001), 71 developing countries, there is a positive relationship between FDI and growth; Zang (2001), Latin America and East Asia countries, FDIs affect growth positively; Campos and Kinoshita (2002), 25 Central and Eastern European countries and former Soviet transition economies, FDI flows affect economic growth positively; Razin (2002), 64 countries, FDI has significant effect on capital accumulation and economic growth; Choe (2003), 80 countries, the direction of causality is from economic growth to FDI; Hunya and Geishecker (2005), Central and Eastern European countries, FDIs led to increase in employment in all countries; Chowdhury and Mavrotas (2005), Newly developing economies, there is a two-way relationship between GDP and FDI in Malaysia and Thailand; Okuyan and Erbaykal (2008), 9 developing countries, there are causality relationships from economic growth to FDI in 6 countries, from FDI to economic growth in 1 country, and twoway in 2 countries; Yang (2008), 110 countries, the effects of FDI on economic growth change based on time and place. Ahmad and Kwan (1991), Ekanayake (1999), Ahmad and Harnhirun (1996), Yapraklı (2007) and Aktaş (2009) studied the relationship between export and economic growth.…”

Section: Uluslararası İktisadi Ve İdari İncelemeler Dergisimentioning

confidence: 99%

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DOĞRUDAN YABANCI YATIRIMLAR, İHRACAT ve EKONOMİK BÜYÜME: SEÇİLMİŞ GELİŞMEKTE OLAN ÜLKELERDEN KANITLAR

Sandalcilar

Dilek

2017

Uluslararası İktisadi Ve İdari İncelemeler Dergisi

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The purpose of this study is to analyze the relationship among foreign direct investments, export and economic growth, and to provide evidence from 44 selected developing countries. Firstly, the data sets consisting of annual data in the period of 2000-2014 were subjected to LLC, IPS and Hadri panel unit root tests and it was concluded that the series did not have unit roots in their level values. The causality relationship among the series was determined using the Dumitrescu-Hurlin Causality Test method. According to the results obtained, it may be argued that there is a two-way relationship of causality among the variables foreign direct investments, export and economic growth in the developing countries in question.

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Section: Resultssupporting

confidence: 90%

Section: Uluslararası İktisadi Ve İdari İncelemeler Dergisimentioning

confidence: 99%

DOĞRUDAN YABANCI YATIRIMLAR, İHRACAT ve EKONOMİK BÜYÜME: SEÇİLMİŞ GELİŞMEKTE OLAN ÜLKELERDEN KANITLAR

Sandalcilar

Dilek

2017

Uluslararası İktisadi Ve İdari İncelemeler Dergisi

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“…The research examining foreign capital investments in Turkey [39,40] focuses on the impacts on economic growth, development, labor costs, real exchange rate, and foreign trade. Some of these studies argued that foreign capital investments contribute to economic growth [41,42] and that Turkey needs foreign investment for economic growth. However, they revealed that the way to attract more investment is to ensure that the country has the necessary infrastructure for investments to flourish [39,40,43,44].…”

Section: Literature Reviewmentioning

confidence: 99%

The Relation Between International Movements and Development: Analysis of Cities in Turkey

Söyler,

Kerimoğlu

2024

IJSDP

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This study aims to analyse the extent to which international mobility impacts the socioeconomic development of cities in Turkey. Firstly, a 27-variable principal component analysis was applied to determine the development index of the cities. The socio-economic development of the cities is classified into six categories. Primarily international mobility, international capital, and population mobility have been evaluated two-dimensionally within the accessible national data covering the years 2018-2019. In this study, the effect of the variables of international mobility on the cities' socio-economic development was identified through multivariate regression and geographic weighted regression (GWR) analysis. Global (OLS) and GWR analyses allow us to investigate the impact of and the relationship between international mobility on socio-economic development. GWR model, which can give placebased regression results and additionally the number of companies with foreign capital, the number of houses sold to foreigners, the number of incentive certificates issued to foreigners, the number of foreign workers, the number of foreigners granted residence permits, and the number of international students were used as independent variables. International capital mobility has a meaningful and positive relationship with the socio-economic development index. The variable of the number of international students used as a part of international population mobility does not have a meaningful effect on socio-economic development index (SEGE). Overall, international mobility has a positive impact on the level of socio-economic development of the cities. However, given the geographical distribution of international capital and population movements in Turkey, western and southern regions seem to have a higher mobility level than the rest of the country.

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“…Hansen and Rand (2006) Developing countries Panel cointegration and causality FDI appears to be growth enhancing much in the same way as domestic investment. Okuyan and Erbaykal (2008) Emerging markets…”

Section: Cross Section Regressionsmentioning

confidence: 99%

Does Foreign Direct Investment Affect Macroeconomic Dynamics? An S-VAR Approach for Turkey

Şiklar¹,

Şiklar²

2022

IJEFR

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This study analyzes the effects of foreign direct investments (FDI) on the macroeconomic dynamics of the Turkish economy through the Structural Vector Autoregressive (SVAR) model. The results obtained, by the economic theory, reveal the positive effects of FDI on economic growth and domestic investment volume. The results also confirm the assumption of economic theory that domestic and foreign investments are complementary. It is understood that the FDI put some pressure on prices to increase, but it is balanced by the decisions of the monetary authority. While FDI does not play a critical role in reducing unemployment, it significantly contributes to the increase in imports, especially in capital goods.

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The Relationship Between FDI and Economic Growth in Developing Countries

Cited by 8 publications

References 0 publications

DOĞRUDAN YABANCI YATIRIMLAR, İHRACAT ve EKONOMİK BÜYÜME: SEÇİLMİŞ GELİŞMEKTE OLAN ÜLKELERDEN KANITLAR

DOĞRUDAN YABANCI YATIRIMLAR, İHRACAT ve EKONOMİK BÜYÜME: SEÇİLMİŞ GELİŞMEKTE OLAN ÜLKELERDEN KANITLAR

The Relation Between International Movements and Development: Analysis of Cities in Turkey

Does Foreign Direct Investment Affect Macroeconomic Dynamics? An S-VAR Approach for Turkey

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