The Relation Between Direct Foreign Capital Investments And Growth: A Study On Turkey After 2008 Crisis
Doğrudan Yabancı Sermaye Yatırımları Ve Büyüme İlişkisi: 2008 Krizi Sonrası Türkiye Uygulaması

Author : Bilge AFŞAR -& Fatih CURA & Faruk DEMİRHAN
Number of pages : 270-288

Abstract

After the Industrial Revolution, the degree of importance of economic factors in production has changed. The prominence of the capital and labor factor has come to the forefront. Capital has begun to turn to regions where it will provide more profit, while countries have tried to attract capital to their economies in order to raise their economic growth and prosperity. This cycle has become faster and more flexible nowadays with the influence of globalization. In commercial terms, the borders have begun to be seen as a single country for world capital owners. Capital owners, as in the past, are planning their international investments according to the criteria such as economic and political stability, cheap labor force and cheap raw materials. This study was conducted in order to measure the relation between the foreign direct investment and economic growth and to determine and conclude the significance of the direct foreign investment for developing economies. In this study, the impact of the foreign direct capital, which came to Turkey after the 2008 economic crisis, on economic growth and unemployment were researched and analyzed econometrically. As a result of the analysis; parallel to similar studies in the literature, it has been observed that direct foreign capital has a positive effect on economic growth and unemployment.

Keywords

Foreign direct investment, economic growth, unemployment

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