Abstract:

The increase in exports through foreign direct investment is one of the most important reasons among governments' desire to attract direct investment. The positive effect of direct investment inflows on the export performance of the host country is explained by the product life cycle, the flying geese model and new growth theories. After the 2008 global crisis, the instabilities in foreign direct investment and exports that started throughout the world economy, including the Turkish economy, continue today. Based on this situation, it has become very important to determine the long-term effect of inward foreign direct investment on exports in the Turkish economy. In this study, the effect of inward foreign direct investment on exports for the Turkish economy between 1980 and 2019 was estimated by cointegration and casuality methods. The findings obtained as a result of the analysis show that inward foreign direct investment have a positive effect on export in the Turkish economy.

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