Abstract:

When considering the benefits of Foreign Direct Investments (FDI) -consitute a large portion of international capital movement and provide a great benefit to economic growth to the country's economy in the point of employment, technology, business knowledge, integration to the international markets. In this study, a analysis has been done to see whether it makes the mentioned influence or contribution in Turkey and whether it supports the theory or not. Johansen-Juselius Cointegration and Granger causality tests are applied between FDI and Gross Domestic Product (GDP) variables that represent the economic growth. At the end of the study, it is FDI and GDP are cointration and that there exists bidirectional causality between FDI and gross domestic product

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