Özet:

This study questioned the causality relationship between capital flow and economic growth for Turkey using different capital flow variables and current econometric methods. The forecasts are made using direct foreign investments and portfolio investments data covering the period from 1974 to 2016 and the asymmetric causality test of Hatemi-J (2012) and the asymmetric effect response functions of Hatemi-J (2014). These methods indicate that when the shocks of the variables are divided positively and negatively, the relationship between the variables can also differ. The findings of the study show that there is no cause for either positive shocks or negative shocks directly from foreign investment input and output variables to economic growth. However, from economic growth directly to foreign investment input and output variables the causality relationship for positive shocks cannot be identified while the existence of causality for negative shocks is concerned. Therefore, economic growth is the cause of foreign direct investment movements; but the result is that this causal relationship is asymmetric. From portfolio investments to economic growth and portfolio investments to economic growth, there is no causal relationship in both types of shock.