Abstract:

The study examined the effects of macroeconomic variables on economic growth, imports, exports, off-cars, inflation and unemployment on foreign investments directly using the Integration and Granger Causal Test for the period 1980-2020. According to the results of the analysis, the study found that the macroeconomic variables selected in the framework of the study have a long-term dual causal relationship between inflation and foreign direct investments. On the other hand, it is a one-way reason for economic growth directly towards foreign investments. Similar results have been obtained from the effect-effect analysis.

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Abstract:

In the study, the effects of macroeconomic variables such as economic growth, imports, exports, current account deficit, inflation and unemployment on foreign direct investments are discussed using Cointegration and Granger Causality Tests for the 1980-2020 period. According to the findings obtained as a result of the analysis, it has been determined that there is a bidirectional causality relationship between inflation and foreign direct investments in the long run which are among the macroeconomic variables selected within the scope of the study. On the other hand, there is a unidirectional causality running from economic growth to foreign direct investments. Similar findings were obtained as a result of the Impact-Response Analysis.

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