Causal relationship between foreign direct investments and macro-level polıtıcal stability in Turkey
Yükleniyor...
Dosyalar
Tarih
2018
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
A number of empirical and theoretical studies as well as real life experiences provide
supportive evidence to the fact that political instability has an ability to harm the inflow of the
Foreign Direct Investments (FDI). This study aims to explore the causal relationship between
macro-level political stability and FDI while focusing on Turkey. The choice of Turkey as a
subject of study is motivated by the fact that Turkish ruling party has ended the political and
economic instability caused by the previous coalition governments. Despite of MTC
(Multinational Terrorist Corporation)’s recent attacks and 15 July failed coup attempt which
was completely different from the previous similar attempts, since it was a bloody-terrorist coup
attempt targeting Turkish stability, Turkey continued to stand strong in the sense of political
and economic conditions thanks to the political stability and national will. Political risk is
studied since it has not received much attention in up-to-date studies treating the case of Turkey.
For this purpose, the causal relationship between FDI and political stability is estimated using
several econometric methods including Johansen cointegration test, the bounds testing (ARDL)
approach, ECM-ARDL model as well as Granger causality test. Time series data are collected
over the 15 years period ranging from 2002 to 2016. To the best of our knowledge, there have
been no studies identified yet which give empirical evidence on the causal relationships between
political stability and FDI inflow in Turkey. Our study aims to fill in this gap in literature and
may be useful for the foreign investors and key decision makers. The results confirm a
bidirectional long-run and short-run positive causal relationship between political stability,
absence of violence and terrorism and FDI.
Açıklama
Anahtar Kelimeler
ARDL, Foreign Direct Investment, Political Stability, Political Violence, Turkey
Kaynak
27. International Scientific Conference on Economic and Social Development-roma
WoS Q Değeri
Scopus Q Değeri
Cilt
Sayı
27
Künye
Satrovic, Elma, Özbozkurt, Onur Başar.(2018).Causal relationship between foreign direct investments and macro-level polıtıcal stability in Turkey.27. International Scientific Conference on Economic and Social Development-roma,196-205.
