Özet:

As one of the critical determinants of economic growth, investments are financed by domestic savings. However, as the capitalist economic system's global integration increases, investments' dependence on foreign savings also increases. The study revisits the hypothesis based on the empirical findings that the theoretical framework of Feldstein and Horioka (1980) that the strong relationship between investment and saving weakens as international capital mobility increases is not valid, considering the phenomenon of economic globalization. In investigating this relationship, it is considered within the framework of developing country economies that have been the driving force of global economic development in the last forty years, apart from OECD countries or developed economies, which are frequently studied in the literature. In the Fourier panel cointegration test and causality analyses are conducted in the study, which endogenously incorporate structural changes into the model results show that although the dependence of investments on savings in developing countries varies across countries, the coefficient of investment-savings retention is relatively low compared to developed countries. Moreover, the findings show that there is no significant relationship between investments and the degree of integration of developing countries into the global capitalist economic system and that the contradiction in the FH hypothesis is valid for developing countries.

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