Abstract:

The aim of this study is to evaluate the relationship between foreign direct investment and economic growth. Although there is no consensus on the relationship between foreign direct investment flows and economic growth in the literature, a growing view in recent years shows that foreign direct investments have contribution on economic growth. These investments act as a main factor for the economic growth of both developed and developing countries. Panel data analysis is used for the empirical study for evaluating the relationship between foreign direct investments and GDP. Data from 14 OECD countries for GDP and foreign direct investments for the 1990-2017 period is used. According to the results of the study, a positive relationship between foreign direct investments and economic growth was identified. Keywords: Foreign Direct Investments, Economic Growth, Panel Data Analysis.

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