Foreign Direct Investments flowed towards developing countries to take advantage of cheap labor starting from the second half of the 20th century. Besides, it is postulated that foreign direct investments are influenced by the growth rates of the targeted countries. In this study, the relationship between real wages, growth, and foreign direct investment is examined using 1980-2002 data for Turkey. Because the wariables used are not stationary, cointegration analysis is employed. Results indicated that there is a cointegration relationship between real wages, growth, and foreign direct investments
Foreign Direct Investments flowed towards developing countries to take advantage of cheap labor starting from the second half of the 20th century. In addition, it is postulated that foreign direct investments are influenced by the growth rates of the targeted countries. In this study, the relationship between real wages, growth, and foreign direct investment is examined using 1980-2002 data for Turkey. Because the wariables used are not stationary, cointegration analysis is employed. Results indicated that there is a cointegration relationship between real wages, growth, and foreign direct investments
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