The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016
This study focuses on Foreign Direct Investment (FDI) inflows and how they are linked with the economic indicators in Turkey including the Real Effective Exchange Rate (REER), and Gross Domestic Product per capita of Purchasing Power Parity - GDP (PPP) in Turkey. The GDP (PPP) variable is used becau...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2017-12-01
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| Series: | ECONOMICS |
| Online Access: | https://doi.org/10.1515/eoik-2017-0019 |
| _version_ | 1818343637136703488 |
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| author | Isiks Aliya Zhkanova Isiksal Huseyin Jalali Hala |
| author_facet | Isiks Aliya Zhkanova Isiksal Huseyin Jalali Hala |
| author_sort | Isiks Aliya Zhkanova |
| collection | DOAJ |
| description | This study focuses on Foreign Direct Investment (FDI) inflows and how they are linked with the economic indicators in Turkey including the Real Effective Exchange Rate (REER), and Gross Domestic Product per capita of Purchasing Power Parity - GDP (PPP) in Turkey. The GDP (PPP) variable is used because it shows significant causality on REER, along with the exchange rate volatility of the U.S Dollar in the Turkish stock market. Also, as an important sector of the Turkish economy, tourism revenue is elucidated according to the Organization for Economic Co-operation and Development (OECD) data from 2016. The main objective of this study is to evaluate the impact of the FDI investment on economic condition in Turkey for the period between January 2010 and July 2016. The selected period is important because it represents the crucial time for Turkish economy following the 2008 global financial crisis along with the ongoing Civil War in neighboring Syria that had initiated in 2012, Turkish-Russian crises of 2015, and the military coup attempt in Turkey in 2016. It is argued that despite all the negative international and regional developments, FDI and Tourism play key roles in attracting income to the country. This is presented in the level of REER and GDP for PPP. The results also support the findings of many economists, who have previously asserted that the Turkish economic interaction is growing at a globalized level, and is able to compete with the other large attractive areas for foreign investors around the world. Finally, the results demonstrate that the tourism industry was the least affected sector in Turkey. |
| first_indexed | 2024-12-13T16:33:45Z |
| format | Article |
| id | doaj.art-9169b68bd3cd402b820772760d3447ce |
| institution | Directory Open Access Journal |
| issn | 2303-5013 |
| language | English |
| last_indexed | 2024-12-13T16:33:45Z |
| publishDate | 2017-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | ECONOMICS |
| spelling | doaj.art-9169b68bd3cd402b820772760d3447ce2022-12-21T23:38:26ZengSciendoECONOMICS2303-50132017-12-0152698110.1515/eoik-2017-0019eoik-2017-0019The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016Isiks Aliya Zhkanova0Isiksal Huseyin1Jalali Hala2Near East Boulevard, Faculty of Business and Administrative Sciences, Istambul, TurkeyNear East Boulevard, Faculty of Business and Administrative Sciences, Istambul, TurkeyGirne American University, Karaman, TurkeyThis study focuses on Foreign Direct Investment (FDI) inflows and how they are linked with the economic indicators in Turkey including the Real Effective Exchange Rate (REER), and Gross Domestic Product per capita of Purchasing Power Parity - GDP (PPP) in Turkey. The GDP (PPP) variable is used because it shows significant causality on REER, along with the exchange rate volatility of the U.S Dollar in the Turkish stock market. Also, as an important sector of the Turkish economy, tourism revenue is elucidated according to the Organization for Economic Co-operation and Development (OECD) data from 2016. The main objective of this study is to evaluate the impact of the FDI investment on economic condition in Turkey for the period between January 2010 and July 2016. The selected period is important because it represents the crucial time for Turkish economy following the 2008 global financial crisis along with the ongoing Civil War in neighboring Syria that had initiated in 2012, Turkish-Russian crises of 2015, and the military coup attempt in Turkey in 2016. It is argued that despite all the negative international and regional developments, FDI and Tourism play key roles in attracting income to the country. This is presented in the level of REER and GDP for PPP. The results also support the findings of many economists, who have previously asserted that the Turkish economic interaction is growing at a globalized level, and is able to compete with the other large attractive areas for foreign investors around the world. Finally, the results demonstrate that the tourism industry was the least affected sector in Turkey.https://doi.org/10.1515/eoik-2017-0019 |
| spellingShingle | Isiks Aliya Zhkanova Isiksal Huseyin Jalali Hala The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016 ECONOMICS |
| title | The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016 |
| title_full | The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016 |
| title_fullStr | The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016 |
| title_full_unstemmed | The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016 |
| title_short | The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016 |
| title_sort | impact of foreign direct investment on turkish economy 2010 2016 |
| url | https://doi.org/10.1515/eoik-2017-0019 |
| work_keys_str_mv | AT isiksaliyazhkanova theimpactofforeigndirectinvestmentonturkisheconomy20102016 AT isiksalhuseyin theimpactofforeigndirectinvestmentonturkisheconomy20102016 AT jalalihala theimpactofforeigndirectinvestmentonturkisheconomy20102016 AT isiksaliyazhkanova impactofforeigndirectinvestmentonturkisheconomy20102016 AT isiksalhuseyin impactofforeigndirectinvestmentonturkisheconomy20102016 AT jalalihala impactofforeigndirectinvestmentonturkisheconomy20102016 |