Acta academica karviniensia 2024, 24(1):29-42 | DOI: 10.25142/aak.2024.003

The Impact of Foreign Direct Investment on Economic Growth in Türkiye: ARDL Approach

Mehman Karimov1, Emilia Huseynova2
1 Azerbaijan Technological University, Azerbaijan State Agricultural University, AZ2000 Ganja, Azerbaijan
2 Mingachevir State University, AZ4500, Mingachevir, Azerbaijan

This paper investigates the impact of Foreign Direct Investment inflows on economic growth in Türkiye. The study covers the period from 2006 Q2 to 2019 Q4. Time series datasets obtained from the CBT and FRED database are used for statistical analyses, including ADF, PP, Zivot Andrews Unit Root Tests, the ARDL bounds testing approach, and the Granger Causality tests, to fulfil the empirical part of the study. Based on the obtained findings, it was confirmed that, Foreign Direct Investment inflows have a positive impact on economic growth in Türkiye. Moreover, the results of the Granger causality analysis reveal a bidirectional relationship between FDI and GDP.

Keywords: ARDL bounds testing approach and Granger causality test, FDI, GDP, Türkiye, Unit root tests.
JEL classification: B22, B27, C12, F21

Received: April 26, 2024; Revised: May 9, 2024; Accepted: June 24, 2024; Published: June 28, 2024  Show citation

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Karimov M, Huseynova E. The Impact of Foreign Direct Investment on Economic Growth in Türkiye: ARDL Approach. Acta academica karviniensia. 2024;24(1):29-42. doi: 10.25142/aak.2024.003.
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