Abstract:

Investments and savings play an important role in improving the economic growth of countries. Where the source of the investments comes from has been examined within many titles in the literature. Feldstein and Horioka investigated the relationship between savings and investment within the framework of international capital mobility. They emphasized that there would be a low level relationship between domestic savings and investment if capital mobility were free, in the study. In this study the Feldstein- Horioka puzzle is tested for Turkey. In the FMOLS-DOLS results made in the study covering the years 1990-2019, it was concluded that international savings affect investments more. As a result of the Frequency Distribution causality analysis conducted in the study, it was determined that there is a medium and long-term relationship from the savings variable to the investment. In addition, it has been determined that there is a relationship between the investment variable and the savings variable in the medium term.

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