The Impact Of Foreign Direct Investment On Total Factor Productivity And Economic Growth In Turkey

Arısoy, İbrahim

doi:10.1353/jda.2012.0013

Cited by 23 publications

(14 citation statements)

References 25 publications

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“…Their results affirmed that it was only the degree of trade openness that determined TFP while other variables showed no significant effect. Meanwhile, Baltabaev (2013) investigated the relationship between FDI and TFP growth in a panel of 49 countries between 1974 and 2008. The author made use of FDI, R&D expenditure, human capital, trade openness, inflation, and population growth as the independent variables.…”

Section: Related Literaturementioning

confidence: 99%

“…They concluded that lowering macroeconomic instability might have helped in increasing Turkey’s TFP and catch up with EU countries. The impact of FDI on aggregate growth and TFP in Turkey for the period 1960–2005 was examined by Arisoy (2012). Using FDI and physical capital accumulation as the explanatory variables, the results indicated that FDI contributed positively to TFP growth via capital accumulation and technological spillovers.…”

Section: Related Literaturementioning

confidence: 99%

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Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

Olomola

Osinubi

2018

Emerging Economy Studies

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This study analyzed the macroeconomic and institutional determinants of total factor productivity (TFP) in the MINT (Mexico, Indonesia, Nigeria, and Turkey) countries during the period 1980–2014. Annual data covering the period between 1980 and 2014 were used. Data on real gross domestic product (real GDP), labor force, gross fixed capital formation, foreign direct investment (FDI), human capital, and inflation were sourced from the World Development Indicators published by the World Bank. Also, data on corruption, government stability, and law and order were obtained from the database of International Country Risk Guide. Panel autoregressive distributed lag (PARDL) regression technique was used to estimate the model. Results showed that TFP growth rate declined on average by 1.4 per cent and 1.8 per cent in Mexico and Turkey, respectively, while Indonesia and Nigeria did not experience productivity growth on the average. Results also showed that in the long run, human capital and government stability had positive and significant effects on TFP, while FDI and corruption had negative but significant effects on TFP. In the short run, there existed a significant negative relationship between TFP and inflation. However, the effects of human capital and corruption on TFP were positive and significant. The study concluded that human capital and corruption were key drivers of TFP in the MINT countries both in the long run and short run.

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Section: Related Literaturementioning

confidence: 99%

Section: Related Literaturementioning

confidence: 99%

Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

Olomola

Osinubi

2018

Emerging Economy Studies

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“…It is important to mention that another empirical study by Arısoy (2012) goes through the effects of FDI on total factor productivities and economic growth for Turkey for the period 1960-2005. The empirical results reveal that FDI positively participates in economic growth rate and total factor productivities through technological spillovers and capital accumulations.…”

Section: Empirical Frameworkmentioning

confidence: 99%

The Impact of Foreign Direct Investment on Economic Growth: A Case Study of Turkey 1980–2012

Aga¹

2014

IJEF

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This paper employs time series techniques to analyse the effect of foreign direct investment on economic growth in Turkey. The study uses annual data over the period 1980-2012. The gross domestic product (GDP) is the dependent variable and foreign direct investment (FDI), domestic investment (DIN) and trade liberalization (TL) are the explanatory variables. The empirical analysis starts with run ordinary least square (OLS). The result of Augmented Dickey Fuller (ADF) test hence shows that the series are non-stationary in the level form and stationary in the first difference. The paper further utilises the Johansen cointegration test whereby it finds no cointegration and long run relationship between variables. This study uses Vector Autoregression (VAR) model in order to find the causality. The result demonstrates that there is no causality linkage between GDP with both FDI and DIN. At the same time, there is one-way causality between GDP and trade liberalisation (TL) in the context of Turkey. On the other hand, it is found that there is statistically insignificant yet positive short run impact of foreign direct investment on gross domestic product (GDP) while OLS is used to analyse the magnitude of the impact by means of level form in Turkey. In addition to this, there is a significant as well as positive impact of domestic investment on economic growth; however, there is negative and significant impact of trade liberalization on economic growth. Keywords: foreign direct investment, gross domestic product, domestic investment, international liberalization, vector autoregressionAccording to (Nair-Reichert & Weinhold, 2001) in the last two decades the FDI has increased by 17 percent in the developing countries. In the last twenty years, globalisation has much supported the inflows of factors of production around the world supported by the advancement of communication and information technology. Multinational companies refer to various indicators and indices in their selection of the particular developing countries to invest. Therefore, despite the advancement in the use of technology in their operation and production, these companies require higher technology and well-educated labour force. In terms of the qualified www.ccsenet.org/ijef

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“…However, they mostly focus on inward FDI and associated variables. Although a number of studies (Liu and Wang, 2003;Arisoy, 2012;Haskel et al, 2007;Baltabaev, 2014;and Newman et al, 2015) provide evidence for the positive effect of inward FDI on TFP, contradictory results (Fan and Hu, 2007;Murakami, 2007;Irsova and Havranek, 2013;Elmawazini, 2014;and Bitzer and Görg, 2005) were also observed. In a recent study, Herzer and Donaubauer (2017), considering the mixed results, revisited this issue for developing countries for the period 1981-2011.…”

Section: Literature Reviewmentioning

confidence: 99%

Does capital drain reduce total factor productivity growth in developing countries?

Yanıkkaya

Altum

2020

Argumenta Oeconomica

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This study investigates the effects of foreign direct investment (FDI) and royalties and licence fees (RLF) on total factor productivity (TFP) growth of about 90 countries for the period 2003-2011 for both inward and outward variables. The estimates for the full sample indicate that while inward FDI stocks have no significant impact, outward FDI stocks reduce TFP growth. While none of the RLF measures have any significant effects, imports and exports have significantly positive effects on TFP growth for the full sample. Outward FDI stocks and RLF payments are estimated to have negative effects on TFP growth for developing nations. Moreover, both RLF receipts and payments are found to have a positive effect on TFP growth in developed nations. To stimulate TFP growth further, developing nations should improve their domestic business environments and find ways to keep investments at home

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The Impact Of Foreign Direct Investment On Total Factor Productivity And Economic Growth In Turkey

Cited by 23 publications

References 25 publications

Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

The Impact of Foreign Direct Investment on Economic Growth: A Case Study of Turkey 1980–2012

Does capital drain reduce total factor productivity growth in developing countries?

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