Abstract:

The inadequacy of capital accumulation is one of the major obstacles to the establishment of a stable economic structure and development in developing countries. In the process of neoliberal globalization, commercial and financial liberalization have increased international capital mobility. Depending on this situation, foreign direct investments have gained importance in the last thirty years in meeting the capital needs of developing countries. There are numerous factors that influence the inflow of foreign direct investments into countries. The aim of this study is to examine the relationship between foreign direct investment inflows and selected factors determining foreign direct investment inflows in Türkiye for the years 1996-2020. According to the findings obtained from Hacker and Hatemi-J (2006) causality test, a unidirectional causality relation has been determined from trade openness, real exchange rate, inflation, and corporate tax to foreign direct investments. It has also been found that there is a bidirectional causality relation between economic growth and foreign direct investments.

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