Abstract:

From the second half of the 20th century on, foreign direct investment (fdi) has been directed to the developing countries and has affected economic growth. The so-called effect have been analyzed by some researchers, and the analyses made by the researchers have provided a considerable number of papers for the literature in this field. Hence, theories about fdi have been improved by scientists. In this paper, the long-termed relationship between foreign direct investment and growth was examined using the annual data of Turkey covering the period of 1981-2013. The method used for investigating this relationship is “Johansen Cointegration” method. The variables of the model are GDP per person, foreign direct investment, human capital, openness and investment. And then, it has been investigated whether fdi generate a technological spillover effects. We used logarithm form of GDP per person, fdi, human capital and investment variables. According to the findings, we observed that variables’ first differences are stationary and there is a long-termed relationship between fdi and economic growth

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