Abstract:

In this study, the relationship between foreign direct investment inflows and exports was tested with the ARDL Bound Test Approach, with the help of annual data for the 1980-2020 period for the Turkish economy. In the model established to determine the relationship between the variables, exports were used as the dependent variable and foreign direct investment inflows were used as the independent variable. In addition, the real effective exchange rate, openness and per capita GDP averages of the 20 countries to which Turkey exports the most are included in the model as control variables. According to the findings; in the long run, foreign direct investments, real effective exchange rate, openness to foreign trade, and the GDPs of the most exported countries affect exports in a positive and statistically significant way. In addition to this result, it is seen that a 1% change in foreign direct investments causes a 0.21% change in Turkey's exports. In addition, in the error correction model established, it has been determined that approximately 39.4% of the deviations that occur in one period are stabilized in the next period.

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