Long-run asymmetric association between FDI and productivity in Turkey
Incoming foreign direct investments (FDI) may enhance the productivity level of the host country by bringing new advanced technologies. On the other hand, the nexus of FDI and productivity, rather than being linear, might be nonlinear because the effect of increases and decreases in FDI on produc...
| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Faculty of Economics University of Rijeka
2022-12-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| Subjects: | |
| Online Access: | https://www.efri.uniri.hr/upload/zbornik%202%202021/01-Ok%C5%9Fak_Koyuncu-2021-2.pdf |
| _version_ | 1818963924350926848 |
|---|---|
| author | Yüksel Okşak Cüneyt Koyuncu |
| author_facet | Yüksel Okşak Cüneyt Koyuncu |
| author_sort | Yüksel Okşak |
| collection | DOAJ |
| description | Incoming foreign direct investments (FDI) may enhance the productivity level of
the host country by bringing new advanced technologies. On the other hand, the
nexus of FDI and productivity, rather than being linear, might be nonlinear
because the effect of increases and decreases in FDI on productivity may not be
symmetric. In this sense, this study investigates the asymmetric relationship
between FDI and productivity in Turkey by using two different productivity
indicators (i.e., PROD1 and PROD2) and employing a Nonlinear ARDL approach.
Our hypothesis claims there is an asymmetric association between FDI and
productivity in the long run in Turkey. Nonlinear cointegration test findings
indicate that selected variables are cointegrated. Hence, they move together in the
long run. Our study uses aggregated data at the macro level to analyze the long-
term asymmetric relationship between foreign direct investment and labor
productivity in Turkey using the NARDL estimation technique. Concerning the
estimation results, a long-run nonlinear relationship between incoming FDI and
labor productivity was detected, and this finding remained valid across two models
constructed by using two distinct labor productivity indicators. As a whole, our
results are consistent with the ones found in the literature. Besides, for the first
time in the literature, this study addresses the long-run asymmetric nexus between
FDI and labor productivity by using macro-level data specific to Turkey and makes
various policy recommendations. |
| first_indexed | 2024-12-20T12:52:57Z |
| format | Article |
| id | doaj.art-fa616c438dec4c738b4a26650a478c72 |
| institution | Directory Open Access Journal |
| issn | 1331-8004 1846-7520 |
| language | deu |
| last_indexed | 2024-12-20T12:52:57Z |
| publishDate | 2022-12-01 |
| publisher | Faculty of Economics University of Rijeka |
| record_format | Article |
| series | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| spelling | doaj.art-fa616c438dec4c738b4a26650a478c722022-12-21T19:40:08ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80041846-75202022-12-0139225327710.18045/zbefri.2021.2.253Long-run asymmetric association between FDI and productivity in TurkeyYüksel OkşakCüneyt KoyuncuIncoming foreign direct investments (FDI) may enhance the productivity level of the host country by bringing new advanced technologies. On the other hand, the nexus of FDI and productivity, rather than being linear, might be nonlinear because the effect of increases and decreases in FDI on productivity may not be symmetric. In this sense, this study investigates the asymmetric relationship between FDI and productivity in Turkey by using two different productivity indicators (i.e., PROD1 and PROD2) and employing a Nonlinear ARDL approach. Our hypothesis claims there is an asymmetric association between FDI and productivity in the long run in Turkey. Nonlinear cointegration test findings indicate that selected variables are cointegrated. Hence, they move together in the long run. Our study uses aggregated data at the macro level to analyze the long- term asymmetric relationship between foreign direct investment and labor productivity in Turkey using the NARDL estimation technique. Concerning the estimation results, a long-run nonlinear relationship between incoming FDI and labor productivity was detected, and this finding remained valid across two models constructed by using two distinct labor productivity indicators. As a whole, our results are consistent with the ones found in the literature. Besides, for the first time in the literature, this study addresses the long-run asymmetric nexus between FDI and labor productivity by using macro-level data specific to Turkey and makes various policy recommendations.https://www.efri.uniri.hr/upload/zbornik%202%202021/01-Ok%C5%9Fak_Koyuncu-2021-2.pdfproductivityfdiworking hoursinvestmentgdppcnardl |
| spellingShingle | Yüksel Okşak Cüneyt Koyuncu Long-run asymmetric association between FDI and productivity in Turkey Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu productivity fdi working hours investment gdppc nardl |
| title | Long-run asymmetric association between FDI and productivity in Turkey |
| title_full | Long-run asymmetric association between FDI and productivity in Turkey |
| title_fullStr | Long-run asymmetric association between FDI and productivity in Turkey |
| title_full_unstemmed | Long-run asymmetric association between FDI and productivity in Turkey |
| title_short | Long-run asymmetric association between FDI and productivity in Turkey |
| title_sort | long run asymmetric association between fdi and productivity in turkey |
| topic | productivity fdi working hours investment gdppc nardl |
| url | https://www.efri.uniri.hr/upload/zbornik%202%202021/01-Ok%C5%9Fak_Koyuncu-2021-2.pdf |
| work_keys_str_mv | AT yukseloksak longrunasymmetricassociationbetweenfdiandproductivityinturkey AT cuneytkoyuncu longrunasymmetricassociationbetweenfdiandproductivityinturkey |