Interplay of Foreign Direct Investments, International Trade, and Economic Growth: Evidence from Turkey

Sezin Zengin Fariasmartinez; Huseyin Cihan Yuceturk

doi:10.36948/ijfmr.2025.v07i01.35336

Interplay of Foreign Direct Investments, International Trade, and Economic Growth: Evidence from Turkey

Author(s)	Sezin Zengin Fariasmartinez, Huseyin Cihan Yuceturk
Country	Turkey
Abstract	Purpose: This paper examines the intricate relationships between foreign direct investments, international trade, and economic growth in the context of Turkey, focusing on key economic indicators and their influence on growth. Design/methodology/approach: The study employs econometric techniques, including Vector Error Correction Model and regression analysis, to investigate the short-term and long-term interactions among variables such as foreign direct investments inflows and outflows, inflation, labor market indicators, research and development expenditures, openness ratio, interest rate, and real effective exchange rate indices. Findings: The findings reveal that foreign direct investments inflows and trade openness positively impact economic growth, while foreign direct investments outflows and inflation exert negative effects. Additionally, the study identifies unexpected relationships, such as a positive link between unemployment and growth, providing new insights into Turkey's economic dynamics. Research limitations/implications: The research emphasizes the need for further investigation into country-specific factors and external shocks that influence the interplay between foreign direct investments, trade, and economic growth in Turkey. Future studies could expand the scope to include comparative analyses with other emerging economies. Originality/value: This paper contributes to the understanding of how foreign direct investments and international trade shape economic growth in Turkey, offering policymakers valuable insights for designing strategies to manage external shocks and promote sustainable growth in a globalized economic environment.
Keywords	Foreign Direct Investments, International Trade, Economic Growth, Turkey, Vector Error Correction Model
Field	Mathematics > Economy / Commerce
Published In	Volume 7, Issue 1, January-February 2025
Published On	2025-02-07
Cite This	Interplay of Foreign Direct Investments, International Trade, and Economic Growth: Evidence from Turkey - Sezin Zengin Fariasmartinez, Huseyin Cihan Yuceturk - IJFMR Volume 7, Issue 1, January-February 2025. DOI 10.36948/ijfmr.2025.v07i01.35336
DOI	https://doi.org/10.36948/ijfmr.2025.v07i01.35336
Short DOI	https://doi.org/g84fdt

View / Download PDF File

E-ISSN 2582-2160

doi

CrossRef DOI is assigned to each research paper published in our journal.

IJFMR DOI prefix is
10.36948/ijfmr

Downloads

Research Paper Format Copyright Permission Form and Undertaking Form Cover Page Vol 7 Isu 1 Cover Page Vol 6 Isu 6 Cover Page Vol 6 Isu 5

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Interplay of Foreign Direct Investments, International Trade, and Economic Growth: Evidence from Turkey

Share this