EFFECT OF FOREIGN DIRECT INVESTMENT ON BALANCE OF PAYMENT FOR TURKEY: ECONOMETRIC ANALYSIS
DOI:
https://doi.org/10.17740/eas.stat.2015‐V2‐05Keywords:
Foreign, direct, investment, Balance, of, Payments, Current, Account, Cointegration, Analysis, Dynamic, Ordinary, Least, Squares, Fully, Modified, Canonical, Cointegrating, RegressAbstract
Foreign direct investment (FDI) that which Turkey has not been able to benefit from so far has an effective role in the conversion of the economy to have a competitive structure at the global level. Especially in the period after 2001, in spite of the efforts to improve the investment environment and to create new production capacity, the development was not at the expected level. To improve new FDI policies is significant for developing countries (like Turkey) which on the one hand continue to develop on the other hand have to cope with high current account deficit issues. In this study, it has tried to reveal short and long term relationships between 1998.Q1- 2013.Q4 current account deficit figures and FDI, GDP for Turkey, GDP for EU, Real Interest Rate (RFO), Real Effective Exchange Rate (REDK) variables. As a result, while REDK, GDP_AB, RFO have positive effect on current account deficient, GDP_TR and DYY have negative effect on it.
