Author/Authors
BOZDAĞLIOĞLU, E. Yasemin Adnan Menderes Üniversitesi - Nazilli İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey , ÖZPINAR, Ömer Adnan Menderes Üniversitesi - Nazilli İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey
Title Of Article
THE VAR ESTIMATE OF THE EFFECTS OF FOREIGN DIRECT INVESTMENT INFLOW TO TURKEY ON TURKEY’S EXPORT PERFORMANCE
شماره ركورد
13945
Abstract
In this article the relationship between FDI inflow to Turkey and Turkey’s export performance is analyzed. The lack of studies in Turkey about this issue constitutes the main motivation behind this study. The effect of FDI on exports was analyzed through the Granger Causality Test (GCT) (for the period of 1992:1-2009:7) and the VAR Analyses. As a result of the GCT, a unidirectional causality from FDI to exports was found. According to the results of export variance decomposition, it is observed that exports are under the influence of exports’ own lagged values. FDI plays 6 percent role in export changes. This finding corresponds to the finding that FDI causes exports. 74 percent of FDI changes arises from FDI, 10 percent from Interest Rates, and 8 percent from Exchange Rate. While Openness Ratio’s explanatory level for FDI is 2 percent, other variables are not significant in explaining FDI changes. According to these results, interest rates in the country, exchange rates, and openness ratio are main incentives behind FDI.
From Page
39
NaturalLanguageKeyword
Foreign Direct Investment , Export , Time Series Analyses , Granger Causality Test , Vector Autoregressive Models (VAR Models)
JournalTitle
dokuz eylul university the journal of graduate school of social sciences
To Page
63
JournalTitle
dokuz eylul university the journal of graduate school of social sciences
Link To Document