Abstract:

In today’s economies, the impact of international capital movements on the country’s economy is being investigated. In particular, with the liberalization of capital movements, foreign direct investments move from developed countries to developing countries. The developing countries that have begun to follow the outer economic policies have followed policies that encourage foreign investors to attract international capital movements to their own countries. Foreign investments in developing countries have had both positive and negative impacts on the country’s economy. After obtaining independence, other developing countries, such as Turkmenistan, Azerbaijan, Kyrgyzstan, Uzbekistan and the Republic of Kazakhstan, have begun to follow out-of-the-country, export-increasing policies for the stable growth of the country’s economy. Economic policies aimed at attracting foreign investments to the country. In this study, the policies implemented in the periods following the independence of the countries concerned, the impact and consequences of international capital movements entering the country on the country’s economy were attempted to be econometrically revealed. Panel data econometrics analysis was conducted using data between 1996-2016 years. According to the study, direct foreign investments have a correctly proportionate, reverse-proportionate relationship with inflation. The most obvious result of the study, contrary to the expected, is that the estimated GDP rate in the period we study is negative and statistically meaningless.

Abstract:

In today’s economies, the influence of international capital flows on the economy of the countries are investigated. Specially (particularly) after the liberalization of capital flows, foreign direct investments are shifting from developed countries to developing countries. Developing countries which started to follow open economy policies, to attract international capital flows to their own countries and to encourage foreign investors, followed policies. Foreign investment in developing countries has had both positive and negative effects on the countries’ economy. After gaining independence, like other developing countries Turkmenistan, Azerbaijan, Kyrgyzstan, Uzbekistan and Kazakhstan Republics, for the steady growth of the country’s economy began to follow open economy and export promotion policies. Economic policies that aim to encourage foreign direct investments are implemented. In this study it is aimed to reveal, the effect and results of foreign direct flows as a result of the policies to this countries’ economies econometrically, after their independence. Data were analyzed by using the panel data econometrics analysis between 1996-2016. According to the results obtained in the study, foreign direct investments have a direct relationship with exports and have an inverse relationship with inflation. Contrary to expectations, the most significant result of the study is that the estimation coefficient of GDP is negative and statistically insignificant.

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