FOREIGN INFLOWS, TRADE AND ECONOMIC GROWTH: EVIDENCE FROM A NEWLY INDUSTRIALIZED COUNTRY
DOI:
https://doi.org/10.29121/ijetmr.v9.i2.2022.1099Keywords:
Exports, Imports, Economic Growth, FDI, Turkey, ARDLAbstract
The current paper analysis the underlying relations between Foreign Influx, Trade and Economic Growth in case of Turkey over the period 1970-2019. The novel technique of ARDL is applied to investigate the presence of a long- and short-run relationship amongst foreign inflows, Trade and Economic Growth. The findings revealed the existence of cointegrating relationship among the variables. Further, outward inflows and the export were the key elements of economic progress in the long run in Turkey. Many important inferences can be made from the estimation results in the study such as the concerned authorities should focus on increasing stockholders’ confidence in the country by reducing political uncertainty and providing favourable environment to foreign investors. Further attention should be paid towards the amount and productivity of external investment flowing in the country in such a way that optimum growth can be achieved.
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References
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Bermejo Carbonell, J., & Werner, R. A. (2018). Does foreign direct investment generate economic growth? A new empirical approach applied to Spain. Economic geography, 94(4), 425-456.
Bilas, V. (2020). Examining the Relationship Between Foreign Direct Investment and Economic Growth: Evidence from Croatia. Montenegrin Journal of Economics, 16(2), 117-129.
Ciobanu, A. M. (2021). The Impact of FDI on Economic Growth in Case of Romania. International Journal of Economics and Finance, 12(12), 1-81.
Dritsaki, C., & Dritsaki, M. (2012). Exports and FDI: A Granger causality analysis in a heterogeneous panel. Economics Bulletin, 32(4), 3128-3139.
Gunaydin, I., & Tatoglu, E. (2005). Does foreign direct investment promote economic growth? Evidence from Turkey. Multinational Business Review, 13(2), 89.
Har, W. M., Teo, K. L., & Yee, K. M. (2008). FDI and economic growth relationship: An empirical study on Malaysia. International Business Research, 1(2), 11-18.
Hobbs, S., Paparas, D., & E AboElsoud, M. (2021). Does Foreign Direct Investment and Trade Promote Economic Growth? Evidence from Albania. Economies, 9(1), 1.
Iqbal, M. S., Shaikh, F. M., & Shar, A. H. (2010). Causality relationship between foreign direct investment, trade and economic growth in Pakistan. Asian Social Science, 6(9), 82.
İzmen, Ü., & Yılmaz, K. (2009). Turkey’s recent trade and foreign direct investment performance. Turkey and the Global Economy. London: Routledge, 173-204.
Kakar, Z. K., Khilji, B. A., & Khan, M. J. (2011). Financial development and energy consumption: empirical evidence from Pakistan. International Journal of Trade, Economics and Finance, 2(6), 469.
Kaur, M., Yadav, S. S., & Gautam, V. (2013). Financial system development and foreign direct investment: A panel data study for BRIC countries. Global Business Review, 14(4), 729-742.
Lee, C. W., & Fernando, A. (2020). Can internally generated FDI impact export performance? The study on Indonesia in the years 1980-2018. International Entrepreneurship Review, 6(1), 29-45.
Liang, C., Shah, S. A., & Bifei, T. (2021). The Role of FDI Inflow in Economic Growth: Evidence from Developing Countries. Journal of Advanced Research in Economics and Administrative Sciences, 2(1), 68-80.
Mahmoodi, M., & Mahmoodi, E. (2016). Foreign direct investment, exports and economic growth: Evidence from two panels of developing countries. Economic Research-Ekonomska Istrazivanja , 29(1), 938–949. 2
Miankhel, A. K., Thangavelu, S. M., & Kalirajan, K. (2009). Foreign direct investment, exports, and economic growth in South Asia and selected emerging countries: a multivariate VAR analysis. Center for Contemporary Asian Studies. CCAS Working paper, 23.
Odhiambo, N. M. (2021). Foreign direct investment and economic growth in Kenya: An empirical investigation. International Journal of Public Administration, 1-12.
Oumarou, I., & Maiga, O. A. (2019). A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger. Journal of Social and Economic Statistics,
Rehman, N. U. (2016). FDI and economic growth: empirical evidence from Pakistan. Journal of Economic and Administrative Sciences, 32(1), 63–76.
SANDALCILAR, A. R., & Dilek, Ö. (2017). Foreign Direct Investments, Export and Economic Growth: Evidences from Selected Developing Countries. Uluslararası İktisadi ve İdari İncelemeler Dergisi, (19), 197-210.
Saleem, H., Shabbir, M. S., & Bilal khan, M. (2020). The short-run and long-run dynamics among FDI, trade openness and economic growth: using a bootstrap ARDL test for co-integration in selected South Asian countries. South Asian Journal of Business Studies, 9(2), 279–295.
Sharma, R., & Kautish, P. (2020). Examining the nonlinear impact of selected macroeconomic determinants on FDI inflows in India. Journal of Asia Business Studies.
Sharma, R., & Kaur, M. (2013). Causal links between foreign direct investments and Trade: A Comparative study of India and China. Eurasian Journal of Business and economics, 6(11), 75-91.
Sindze, P., Nantharath, P., & Kang, E. (2021). FDI and Economic Growth in the Central African Economic and Monetary Community (CEMAC) Countries: An Analysis of Seven Economic Indicators. International Journal of Financial Research, 12(1).
Singh, K., & Kumar, A. (2020). empirical analysis of India’s foreign trade and economic growth. International Journal of Research-GRANTHAALAYAH, 8(10), 105-111.
Szkorupová, Z. (2014). A Causal Relationship between Foreign Direct Investment, Economic Growth and Export for Slovakia. Procedia Economics and Finance, 15(14), 123–128.
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sshttps://databank.worldbank.org/source/world-development-indicators
https://www.investopedia.com/terms/e/emergingmarketeconomy.asp
https://www.hrw.org/world-report/2017/country-chapters/turkey (World report, 2017)
Published
2022-02-17
How to Cite
Ravinder, Poonam, & Pal Saini, V. . (2022). FOREIGN INFLOWS, TRADE AND ECONOMIC GROWTH: EVIDENCE FROM A NEWLY INDUSTRIALIZED COUNTRY. International Journal of Engineering Technologies and Management Research, 9(2), 15–26. https://doi.org/10.29121/ijetmr.v9.i2.2022.1099
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