Özet:

In this study, the relations between FDI and economic growth, employment and capital formation have been analyzed for the period of 1984-2015 by using the Sims and DL-VAR causality methods for the Turkish economy. It is aimed to determine the effect of FDI inflows on the Turkish economy with the study.The results of the analysis indicate that there is a positive one-way causality relationship running from the economic growth and capital formation to FDI, but there is no any causality relationship between FDI and employment. Additionally, the findings of generalized impulse-response functions and variance decomposition analyses also support the results of the Sims and DL-VAR causality tests results. As a result, growth in Turkish economy has a positive impact on foreign direct investments inflows.

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