Dynamic Linkages Among Foreign Direct Investment, Public Investment And Private Investment: Evidence From Turkey
AbstractThis study seeks to provide evidence on the dynamic interactions among foreign direct investment (FDI), private domestic investment and public domestic investment in Turkey for the period 1970-2009 using a multivariate VAR framework. Our findings indicate that there is no long-run relationship between FDI, public investment and private investment, indicating the poor contribution of FDI to the Turkish investment path. The lack of interaction between FDI and domestic investment, which impedes the contribution of FDI to economic growth from capital accumulation channel, questions the benefits of FDI. These results suggest that special emphasis should be given to improving investment climate.
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Bibliographic InfoArticle provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.
Volume (Year): 11 (2011)
Issue (Month): 2 ()
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Find related papers by JEL classification:
- F20 - International Economics - - International Factor Movements and International Business - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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