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The Effects of Foreign Direct Investment on Turkish Economy

Dürnel, Josh-Coskun LU (2012) NEKM01 20121
Department of Economics
Abstract
This study’s ambition is to investigate the effects of Foreign Direct Investment for Turkey at the individual sector level. To the best of our knowledge, this is the first endeavor to investigate the sector-specific effect of FDI on GDP for Turkey. The main research is carried out by support of basic neo-classical growth theory and new endogenous growth paradigms. The study mainly employs empirical models, such as the panel data estimation, panel cointegration and pooled/panel estimation techniques. Moreover, Granger-Causality, Arellano-Bond Dynamic panel-data estimation with one-step system GMM estimator techniques is indispensable to the accomplishment of this work. By choosing panel estimation technique, the author intends to control... (More)
This study’s ambition is to investigate the effects of Foreign Direct Investment for Turkey at the individual sector level. To the best of our knowledge, this is the first endeavor to investigate the sector-specific effect of FDI on GDP for Turkey. The main research is carried out by support of basic neo-classical growth theory and new endogenous growth paradigms. The study mainly employs empirical models, such as the panel data estimation, panel cointegration and pooled/panel estimation techniques. Moreover, Granger-Causality, Arellano-Bond Dynamic panel-data estimation with one-step system GMM estimator techniques is indispensable to the accomplishment of this work. By choosing panel estimation technique, the author intends to control unobserved sector-specific effects, and consequently to reduce the omitted variable bias. The essential findings for the study suggest that Foreign Direct Investment contributed growth rate overall positive in Turkish economy. Foreign Direct Investment seems to benefit growth rate most in the Manufacturing, Electricity, Gas and Water, Wholesale and Retail Trade sectors. It justifies that FDI utilizes the labor productivity and consequently the growth rate at the sector-specific level in variety of magnitudes. Moreover, one way causality from FDI to GDP is found. (Less)
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author
Dürnel, Josh-Coskun LU
supervisor
organization
alternative title
A Sectoral level Empirical Analysis
course
NEKM01 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
Panel Unit Root, Growth Theory, Foreign Direct Investment, Turkish Economy, Panel Estimation, Granger Causality
language
English
additional info
Ph.D. Pontus Hansson as a Co-Supervisor
id
3046743
date added to LUP
2012-09-27 11:09:47
date last changed
2012-09-27 11:09:47
@misc{3046743,
  abstract     = {This study’s ambition is to investigate the effects of Foreign Direct Investment for Turkey at the individual sector level. To the best of our knowledge, this is the first endeavor to investigate the sector-specific effect of FDI on GDP for Turkey. The main research is carried out by support of basic neo-classical growth theory and new endogenous growth paradigms. The study mainly employs empirical models, such as the panel data estimation, panel cointegration and pooled/panel estimation techniques. Moreover, Granger-Causality, Arellano-Bond Dynamic panel-data estimation with one-step system GMM estimator techniques is indispensable to the accomplishment of this work. By choosing panel estimation technique, the author intends to control unobserved sector-specific effects, and consequently to reduce the omitted variable bias. The essential findings for the study suggest that Foreign Direct Investment contributed growth rate overall positive in Turkish economy. Foreign Direct Investment seems to benefit growth rate most in the Manufacturing, Electricity, Gas and Water, Wholesale and Retail Trade sectors. It justifies that FDI utilizes the labor productivity and consequently the growth rate at the sector-specific level in variety of magnitudes. Moreover, one way causality from FDI to GDP is found.},
  author       = {Dürnel, Josh-Coskun},
  keyword      = {Panel Unit Root,Growth Theory,Foreign Direct Investment,Turkish Economy,Panel Estimation,Granger Causality},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Effects of Foreign Direct Investment on Turkish Economy},
  year         = {2012},
}