Özet:

Foreign Direct Investment (FDI) has direct and indirect effects on the current account balance (CAB). While some of these effects are positive, some of it is caused by the current account deficits in the balance. Thus, the net effect on the current account of foreign direct investments is uncertain. Studies examining the effects on the current account balance of foreign direct investments coincide especially the post-1990 period with the speed of globalization. This study examines causal relationships between FDI and current account in the developing countries. In the tests taking into 30 Developing Countries with mid-upper income for the period 1990-2011 caught a two-way causal relationship. These results indicate that FDI inflows in the developing countries lead to deficits these countries' current account. Such a result means increase the transfer of profits and the current account deficits stimulating the country's imports directly and indirectly.

Anahtar Kelimeler: