Abstract:

In this study, the impact of foreign direct investment output on the main country’s economic growth was studied in the example of developed and developing countries. The study in this scope has been tested with panel data analysis methods for the 1993-2018 period. The study analyzed the horizontal cut dependence; with the Pesaran and Yamamata (2008) LMadj test and found that there was horizontal cut dependence between countries. The standby of the series; Hadri and Kurozumi (2012) panel unit root test was tested and it was found that the series became standby when the first differences were taken. The existence of the matching relationship between the series has been tested by the Durbin-Hausman panel matching test and it has been shown that the series are matched. The integration ratio is estimated by Panel AMG (2009). According to the analysis, a 10% increase in foreign direct investment outputs in these countries has increased the main country’s economic growth by 2.1% over the long term.

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