Abstract:

Inside the country, the scarcity of resources to meet the needs of society makes it necessary to supply external resources. Since foreign direct investment is perhaps the most desirable way to transfer this resource, its relationship with the economy should ensure sustainability without harming the environment. From the sustainable growth aspect, the importance of achieving economic growth by preserving essential natural resources is undeniable. Therefore, this study’s primary purpose is to research Turkey’s relationship between carbon dioxide used as CO2 emissions and net foreign direct investment, energy consumption, gross domestic product per capita using annual data with the Toda-Yamamoto causality test over 1974-2015. As a result, it has been found that no correlation has been found between net foreign direct investment and CO2 emissions and the increase in energy consumption led to an increase in CO2 emissions and one-way causation from CO2 emissions to energy consumption. An increase in per capita income leads to a decrease in CO2. Along with this, there exists a bidirectional causality both from per capita income to CO2 and from CO2 to per capita income.