The causality between FDI and sector-specific production in Turkey: evidence from threshold cointegration with regime shifts

Bilgili, Faik; Tülüce, Nadide Sevil Halıcı; Doğan, İbrahim; Bağlıtaş, H. Hilal

doi:10.1080/00036846.2015.1078451

Cited by 4 publications

(3 citation statements)

References 43 publications

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“…This helps to explain why people might save more during times of economic uncertainty or when they expect their income to decrease in the future. Hence, Bilgili and Baglitas (2015) explained the random walk hypothesis could be referred to as the permanent income hypothesis with rational expectations (REPIH). This is due to the fact that in their model, reasonable expectations are used in place of adaptive exceptions.…”

Section: Discussionmentioning

confidence: 99%

“…This model's most significant implication is that consumption's marginal utility is a random walk, meaning that aside from current consumption, no information currently known can be used to predict future consumption (Hall, 1978). According to Bilgili and Baglitas (2015), rational expectations were substituted for adaptive exceptions in the model. This allows the estimation of consumption level through information obtained from the past, current, and future via the substitution done.…”

Section: Conducting the Review: Search Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Household Consumption Function Based on Permanent Income Hypothesis: A Systematic Review

Yun¹,

Samsu²,

Yassin³

et al. 2023

IJAREMS

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The Permanent Income Hypothesis was first proposed by Milton Friedman in the 1950s and has been an important theory in the field of macroeconomics. According to this theory, the spending behavior of individuals is based on their long-term average income rather than their current income. The theory posits that individuals adjust their spending patterns based on their expected lifetime income rather than temporary fluctuations in their income. Given the severe impact of COVID-19 on household consumption and income change, it becomes increasingly important to model household consumption. With this subject becoming increasingly significant, it is noteworthy to retrieve and report on the existing literature, especially within the context of explaining the Permanent Income Hypothesis (PIH) relevancy to model household consumption. This study will employ the PRISMA strategy in the systematic review of the existing literature. The finding from this review showed the literature found can be clustered into three (3) themes in answering the research questions and contributing to the existing body of knowledge in this domain. Finally, this systematic review will advance the literature and provide recommendations for policy formulation, as well as paving way for future studies within this context.

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Section: Discussionmentioning

confidence: 99%

Section: Conducting the Review: Search Methodsmentioning

confidence: 99%

Household Consumption Function Based on Permanent Income Hypothesis: A Systematic Review

Yun¹,

Samsu²,

Yassin³

et al. 2023

IJAREMS

View full text Add to dashboard Cite

show abstract

“…Technological diffusion due to foreign direct investment (FDI) forms a crucial source to sustain economic growth in the developing world (Balasubramanyam et al 1996;Borensztein et al 1998;de Mello 1999;Xu 2000). This idea is not new and has its antecedent under new growth theory in which overall productivity is demonstrated to be endogenous, pertinent to external inputs such as FDI (Berthélemy and Démurger 2000;Bilgili et al 2016;Borensztein et al 1998;Romer 1990;Su and Liu 2016). Aside from this, FDI maintains extra advantages such as being less volatile, difficult to reverse and subject to minimum political collaterals, as opposed to portfolio equity and debt flows, insulating host countries from unexpected economic and political shocks (Lensink and Morrissey 2006).…”

Section: Introductionmentioning

confidence: 99%

Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities

Yao

Salim

2018

Empir Econ

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This study investigates the empirical relationship between foreign direct investment (FDI) and domestic investment (DI) in China using a comprehensive city-level panel over the period from 2003 to 2011. System generalized method-of-moment estimation reveals mixed results. At the national level, FDI neither crowds in nor crowds out DI, indicating a neutral FDI-DI nexus. However, when the full sample is segmented by geographical topology, a positive and significant FDI-DI nexus can be found in eastern and, to a lesser extent, central cities. A negative, although insignificant, association is reported among western cities. Further, the empirical nexus is conditional on several local absorptive capacities including human capital, financial development, and institutional quality. These findings suggest that a region-based FDI strategy in general and local governments should strengthen their absorptive capacities to fully internalize FDI spillovers.

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Financial Liberalization, Capital Movements, and Economic Growth in Asia: A Panel Structural VAR Approach

Bilgili

Doğan

Koçak

et al. 2021

Economic Growth and Financial Development

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The causality between FDI and sector-specific production in Turkey: evidence from threshold cointegration with regime shifts

Cited by 4 publications

References 43 publications

Household Consumption Function Based on Permanent Income Hypothesis: A Systematic Review

Household Consumption Function Based on Permanent Income Hypothesis: A Systematic Review

Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities

Financial Liberalization, Capital Movements, and Economic Growth in Asia: A Panel Structural VAR Approach

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