Abstract:

The concept of development has been one of the critical issues that countries have been highly concerned about for years. In general, all efforts aimed at elevating the current socio-economic living standards can be considered within the scope of development. Population growth in countries and the global momentum gained by the competitive environment can sometimes lead to insufficient development efforts. Particularly in countries with limited capital accumulation, these efforts tend to remain at lower levels. To support these constrained endeavors, foreign investments can be of great importance. This study aims to measure the impact of foreign direct investments on regional development. Within this context, the study investigates the effects of growth, inflation, per capita reserves, exports, imports, and foreign direct investments on the Human Development Index (HDI) for the 27 EU countries and Turkey, using the dynamic panel data analysis method. Data from the years 2011 to 2021 are utilized in the study. The analysis conducted using the Arellano-Bond test in dynamic panel data analysis reveals that a positive change in the growth variable will positively affect the HDI. However, it is observed that the other variables do not have a statistically significant impact.

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