Doğrudan Yabancı Yatırımların Ekonomik Büyümeyi Etkilediği Kanalların Rolü
The Role Of Channels Through Which Foreıgn Direct Investment Influences Economic Growth

Author : Hakan YILDIZ
Number of pages : 268-277

Abstract

Numerous studies have tried to reveal benefits of foreign direct investment (FDI) on economic growth. How-ever, different empirical results have been culminated due to abilities of host countries. In this study, it is aimed to examine whether capabilities of host countries such as financial development, trade openness and human capital (also known as absorptive capacity indicators) can enable host countries to exploit FDI more. Empirical findings, using five-year averaged panel data between 1960 and 2016, show that FDI alone con-tributes on economic growth positively and more than domestic investment. However, especially in develop-ing countries, trade openness and human capital are more effective than financial development on benefiting from FDI. Results also show that for developing countries, financial development has a threshold level and countries can benefit from the positive effects of FDI when this level is exceeded.

Keywords

Foreign Direct Investment, Economic Growth, Absorptive Capacity, Panel Data.

Read: 701

Download: 196