THE ANALYSIS OF THE EFFECTS OF REAL EXCHANGE RATE AND FOREIGN DIRECT INVESTMENTS ON ECONOMIC GROWTH: THE CASE OF TURKEY
REEL DÖVİZ KURU ve DOĞRUDAN YABANCI YATIRIMLARIN EKONOMİK BÜYÜME ÜZERİNDEKİ ETKİSİ’NİN ARDL YÖNTEMİ İLE ANALİZİ: TÜRKİYE ÖRNEĞİ

Author : Oktay KIZILKAYA -- Ahmet AY
Number of pages : 290-304

Abstract

This study aims to analyze the interaction among real exchange rate, foreign direct investments, and economic growth by using quarterly data covering 1989-2011 for the Turkish economy. For this purpose, bounds test approach and the ARDL method that enable different stationarity levels for series and estimate short-term and long-term coefficients are utilized, and findings are tested by employing Granger causality test. The results show that while foreign direct investments affect economic growth negatively, real exchange rate affects economic growth negatively.

Keywords

Economic Growth, Real Exchange Rate, Foreign Direct Investments, Bounds Test Approach and ARDL Metho

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