Foreign Direct Investment in Emerging Markets: The Case of the Turkish Economy

Abstract

This study examines the tnacroeconomic effect of FDI on the Turkish economy. We construct a basic macro model and use regression analysis to explore the possible effects of FOi on the Turkish economy through domestic investment, private consumption, exports, and imports. We use data from 1960 to 2000 and find that FDI has a statistically significant positive effect on domestic investment, exports, and imports. On the other hand, FDI has no statistically significant effect on private consumption. (CJO, E20, F21)