Abstract

When studies dealing with the relationship between foreign direct investment and economic growth are examined in the international literature, it is observed that different results are obtained. While some studies have concluded that direct foreign investment is associated with economic growth, some studies have not found a relationship between the two variables. In this study, the relationship between FDI and economic growth for the Turkish economy was examined during the period of 2006Q1-2016Q4. As a result of the applied econometric analyzes, FDI was found to cause economic growth, and this result was confirmed by impulse-response analysis and variance decomposition analysis.