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Economic Freedom and FDI: Co-Integration Analysis

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  • Selim Corekcioglu

    (Szent Istvan University, Budapest, Hungary)

Abstract

These days, economic growth is very important for all countries and this article will discuss the main factors associated with this problem and propose some possible solutions which can be implemented. The importance and relationship of foreign direct investment, economic growth and economic freedom are presented and evaluated by considering literature, and a long run relationship between foreign direct investment and economic freedom in Turkey is empirically analysed in the article. The time period covers the years 1996 to 2018. The data has been obtained from the World Bank and from theHeritage Foundation database. The analysis is based on the time series analysis. An Augmented Dickey-Fuller test hasindicated that the variables are not stationary at levels, but they are stationary at the first difference. The Johansen test hasshown that variables are co-integrated, which means that they move together in the long run.

Suggested Citation

  • Selim Corekcioglu, 2020. "Economic Freedom and FDI: Co-Integration Analysis," Research Papers in Economics and Finance, Poznań University of Economics and Business, vol. 4(3), pages 37-45, December.
    • Handle: RePEc:jbl:ref000:v:4:y:2020:i:3:id:98
    DOI: 10.18559/ref.2020.3.4
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