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The Relationship Between Direct Foreign Capital Investment, Economic Freedom And Economic Growth In Emerging Markets

Year 2019, Volume: 22 Issue: 1, 1 - 10, 30.04.2019
https://doi.org/10.29249/selcuksbmyd.454388

Abstract

Economic growth is defined as an increase in the volume of
production of an economy over time. Economic growth is important for the
country at every level of development. Foreign capital investments are
generally divided into two categories: direct foreign capital investments and
indirect foreign capital investments. Foreign direct investment flows in
developing markets are seen as the main driving force of economic development,
employment and national income. With globalization, there have been significant
increases in Foreign Direct Investment since 1990s. Despite the fact that the
foreign direct investment (FDI) inflows predicts tremendous benefits to the
host country, there are conflicting results in the FDI - growth relationship in
the literature. The aim of this study is to analyze the relationship between
direct foreign investment, economic freedom and economic growth in the 12
countries defined as emerging markets in the period of 1995-2016 by using
dynamic panel data method. According to the results of the analysis, there is a
relation between FDI and economic growth. Also no relation with economic
freedom has been observed. Moreover, high technological product exports and
population affect FDI. There is no relation between FDI and trade openness,
interest rates, unemployment rate, domestic consumption.

References

  • Adalı, Z. & Yüksel, S. (2017). Causality Relationship Between Foreign Direct Investments And Economic Improvement For Developing Economies, Marmara İktisat Dergisi, 1, (2), 109-118Akıncı, M. Yüce, G. & Yılmaz, Ö. (2014). Ekonomik özgürlüklerin iktisadi büyüme üzerindeki etkileri: Bir panel veri analizi. Anadolu Üniversitesi Sosyal Bilimler Dergisi,14(2):81-96.Alfaro, L., Kalemli-Ozcan, S., Sayek,S. (2009). FDI, productivity and financial development. World Econ,32(1), pp.111–135.Altunışık, İ., Çakmak, Y. & Peker, H.S. (2011). Ekonomik Özgürlük ve Refah. Selçuk Üniversitesi Kadınhanı Faik İçil Meslek Yüksekokulu Sosyal ve Teknik Araştırmalar Dergisi, 1 (1).Azman-Saini, W. N. W., Baharumshah, A. Z., & Law, S. H. (2010). Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling, 27(5),pp. 1079-1089.Baltabaev, B. (2014) FDI and total factor productivity growth: new macro evidence.World Econ 37(2):311–334.Bengoa, M. & Sanchez-Robles, B. (2003). Foreign Direct Investment, Economic Freedom and Growth: New Evidence from Latin America. European Journal of Political Economy, 19(3):529-535.Beşkaya, A. & Manan, Ö. (2009). Ekonomik Özgürlükler ve Demokrasi ile Ekonomik Performans Arasındaki İlişkinin Zaman Serileri ile Analizi: Türkiye Örneği. ZKÜ Sosyal Bilimler Dergisi, 5(10), 47‐76.Caetano, J. & Caleiro, A. (2009). Economic Freedom and Foreign Direct Investment: How Different are the MENA Countries from the EU. iBusiness, 1:65-74.Choong, C.-K., Baharumshah, A.Z., Yusop, Z., Habibullah, M.S. (2010). Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis. Japan and the World Economy 22, 107–117.Coşkun, R. (2001), “Determinants of Direct Foreign Investment in Turkey”, European Business Review, Vol.13, No. 4, pp. 221–226.De Mello, L.R. (1999). Foreign direct investment in developing countries and growth: a selected survey. Journal of Development Studies 34 (1), 1–34.Doucouliagos, C. and Ulubaşoğlu, M. A. (2006). Economic Freedom and Economic Growth: Does Specification Make A Difference?. European Journal of Political Economy, 22, 60‐81.Dunning, J.H. (1993), Multinational Enterprise and the Global Economy, Addison Wesley, Wokingham.Ericsson, J., Irandoust, M. (2001). On the causality between foreign direct investment and output: a comparative study. International Trade Journal 15, 1–26.Güney, T. (2017). Türkiye Ve Brıcs Ülkelerinde Ekonomik Özgürlüğün Ekonomik Büyüme Üzerindeki Etkisi, International review of economics and management, 5, (2), 30-47.Gwartney, J., Hollcombe, R.G., Lawson R.A. (2004). Economic Freedom, Institutional Quality and Cross-Country Differences in Income and Growth, Cato Journal, 24(3), 205-233.Hanke, S. & Walters, S.J.K. (1998). Economic Freedom, Prosperity and Equality:Survey, 17 Cato J. 117.Herzer, D. & Donaubauer, J. (2015). The long-run effect of foreign direct investment on total factor productivity in developing countries: A panel cointegration analysis. Empirical Economics, 1-34.Herzer, D., Klasen, S., Nowak-Lahman, D. (2008). In search of FDI-led growth in developing countries. Economic Modelling 25, 793–810.Ilgun, E., Koch, K. & Orhan, M. (2010). Eurasian Journal of Business and Economics 2010, 3 (6), 41-55.Kızılkaya, O., Ay, A. & Akar, G. (2016). Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis. Theoretical and Applied Economics, 3(608), 127-140.Kmenta, J. (1986). Elements of Econometrics. 2nd ed. New York: Macmillan.Kobeissi, N. (2005). Impact of Governance, Legal System and Economic Freedom on Foreign Investment in the MENA Region. Journal of Comparative International Management, 8(1):20-41.Moran, T.H. (1998). Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies in Transition. Washington D.C, Institute of International Economics.Parks, R. (1967). Efficient Estimation of a System of Regression Equations When Disturbances Are Both Serially and Contemporaneously Correlated. Journal of the American Statistical Association 62: 500–509.Pesaran, H. (2006). A simple panel unit root test in the presence of cross section dependence, Cambridge University, Working Paper, No: 0346.Quazi, R. (2007). Economic Freedom and Foreign Direct Investment in East Asia, Journal of the Asia Pacific Economy, 12(3):329-344.Quazi, R. and Rashid, S. (2004). Economic Freedom and Foreign Direct Investment in Developing Countries. The International Journal of Business and Public Administration, 2(1):92–99.Sucu, M. B. (2017). Yükselen Piyasa Ekonomilerinde Ekonomik Özgürlük, Büyüme ve Kalkınma İlişkisi: Bir Panel Veri Analizi, Bulletin of Economic Theory and Analysis, II, (2), 135-167.Tunçsiper, B. & Biçer, Ö.F. (2014). Ekonomik Özgürlükler ve Ekonomik Büyüme Arasındaki İlişkinin Panel Regresyon Yöntemiyle İncelenmesi. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 9(2), 25‐ 45Türen, U., Gökmen, Y. & Dilek, H. (2011). Ekonomik Özgürlük Endeksinin Yurt Dışına Doğrudan Yabancı Yatırım Yapan Türk Sermayesinin Ülke Seçim Kararına Etkisi Var mıdır?. Maliye Dergisi, 161, 298-325.Vergili, H. & Karaca, Ç. (2010). Gelişmekte Olan Ülkelere Yönelik Uluslararası Sermaye Hareketlerinin Ekonomik Büyüme Üzerindeki Etkisi: Panel Veri Analizi, Ege Akademik Bakiş, 10, (4), 1207-1216.Wang M & Wong M.C.S. (2009) Foreign direct investment and economic growth: the growth accounting perspective. Econ Inq 47(4):701–710Woo, J. (2009) Productivity growth and technological diffusion through foreign direct investment. Econ Inq 47(2):226–248.Wooldridge, J. M. (2013). Introductory Econometrics: A Modern Approach (Fifth international ed.). Australia: South-Western. pp. 82–83. ISBN 978-1-111-53439-4.

Gelişen Piyasalarda Doğrudan Yabancı Sermaye Yatırımı, Ekonomik Özgürlük Ve Ekonomik Büyüme İlişkisi

Year 2019, Volume: 22 Issue: 1, 1 - 10, 30.04.2019
https://doi.org/10.29249/selcuksbmyd.454388

Abstract

Ekonomik büyüme bir ekonominin zaman içindeki üretim hacmindeki
artış olarak tanımlanmaktadır. Yabancı sermaye yatırımları genellikle ikiye
ayrılmaktadır: Doğrudan yabancı sermaye yatırımları ve dolaylı yabancı sermaye
yatırımları. Gelişmekte olan ülkelere giren doğrudan yabancı sermaye
yatırımları ekonomik büyümenin, istihdamın ve milli gelirin artmasının ana
itici gücü olarak görülmektedir. Küreselleşme ile 1990'lardan itibaren Doğrudan
Yabancı Sermaye Yatırımlarında (DYSY) önemli artışlar olmuştur. Literatürde yer
alan doğrudan yabancı sermaye yatırımının evsahibi ülkelere önemli yararlar
sağladığı bulgularına rağmen, DYSY – büyüme ilişkisine yönelik araştırmalarda
çelişkili sonuçlar bulunmaktadır. Bu çalışmada 1995-2016 yılları arasında
gelişmekte olan piyasa olarak tanımlanan 12 ülkede DYSY, ekonomik özgürlük ve
ekonomik büyüme ilişkisinin Dinamik Panel Veri metodu ile analiz edilmesi
amaçlanmıştır. Analiz sonuçlarına göre % 5 anlamlılık düzeyinde DYSY ve
ekonomik büyüme arasında anlamlı bir ilişki bulunmaktadır.  Ancak ekonomik özgürlükler ile bir ilişkiye
rastlanılmamıştır. Ayrıca, yüksek teknolojik ürün ihracatı ve nüfus Doğrudan
Yabancı Sermaye Yatırımlarını etkilemektedir. Dışa açıklık, faiz oranları,
işsizlik oranı ve iç tüketim arasında ilişki bulunamamıştır.

References

  • Adalı, Z. & Yüksel, S. (2017). Causality Relationship Between Foreign Direct Investments And Economic Improvement For Developing Economies, Marmara İktisat Dergisi, 1, (2), 109-118Akıncı, M. Yüce, G. & Yılmaz, Ö. (2014). Ekonomik özgürlüklerin iktisadi büyüme üzerindeki etkileri: Bir panel veri analizi. Anadolu Üniversitesi Sosyal Bilimler Dergisi,14(2):81-96.Alfaro, L., Kalemli-Ozcan, S., Sayek,S. (2009). FDI, productivity and financial development. World Econ,32(1), pp.111–135.Altunışık, İ., Çakmak, Y. & Peker, H.S. (2011). Ekonomik Özgürlük ve Refah. Selçuk Üniversitesi Kadınhanı Faik İçil Meslek Yüksekokulu Sosyal ve Teknik Araştırmalar Dergisi, 1 (1).Azman-Saini, W. N. W., Baharumshah, A. Z., & Law, S. H. (2010). Foreign direct investment, economic freedom and economic growth: International evidence. Economic Modelling, 27(5),pp. 1079-1089.Baltabaev, B. (2014) FDI and total factor productivity growth: new macro evidence.World Econ 37(2):311–334.Bengoa, M. & Sanchez-Robles, B. (2003). Foreign Direct Investment, Economic Freedom and Growth: New Evidence from Latin America. European Journal of Political Economy, 19(3):529-535.Beşkaya, A. & Manan, Ö. (2009). Ekonomik Özgürlükler ve Demokrasi ile Ekonomik Performans Arasındaki İlişkinin Zaman Serileri ile Analizi: Türkiye Örneği. ZKÜ Sosyal Bilimler Dergisi, 5(10), 47‐76.Caetano, J. & Caleiro, A. (2009). Economic Freedom and Foreign Direct Investment: How Different are the MENA Countries from the EU. iBusiness, 1:65-74.Choong, C.-K., Baharumshah, A.Z., Yusop, Z., Habibullah, M.S. (2010). Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis. Japan and the World Economy 22, 107–117.Coşkun, R. (2001), “Determinants of Direct Foreign Investment in Turkey”, European Business Review, Vol.13, No. 4, pp. 221–226.De Mello, L.R. (1999). Foreign direct investment in developing countries and growth: a selected survey. Journal of Development Studies 34 (1), 1–34.Doucouliagos, C. and Ulubaşoğlu, M. A. (2006). Economic Freedom and Economic Growth: Does Specification Make A Difference?. European Journal of Political Economy, 22, 60‐81.Dunning, J.H. (1993), Multinational Enterprise and the Global Economy, Addison Wesley, Wokingham.Ericsson, J., Irandoust, M. (2001). On the causality between foreign direct investment and output: a comparative study. International Trade Journal 15, 1–26.Güney, T. (2017). Türkiye Ve Brıcs Ülkelerinde Ekonomik Özgürlüğün Ekonomik Büyüme Üzerindeki Etkisi, International review of economics and management, 5, (2), 30-47.Gwartney, J., Hollcombe, R.G., Lawson R.A. (2004). Economic Freedom, Institutional Quality and Cross-Country Differences in Income and Growth, Cato Journal, 24(3), 205-233.Hanke, S. & Walters, S.J.K. (1998). Economic Freedom, Prosperity and Equality:Survey, 17 Cato J. 117.Herzer, D. & Donaubauer, J. (2015). The long-run effect of foreign direct investment on total factor productivity in developing countries: A panel cointegration analysis. Empirical Economics, 1-34.Herzer, D., Klasen, S., Nowak-Lahman, D. (2008). In search of FDI-led growth in developing countries. Economic Modelling 25, 793–810.Ilgun, E., Koch, K. & Orhan, M. (2010). Eurasian Journal of Business and Economics 2010, 3 (6), 41-55.Kızılkaya, O., Ay, A. & Akar, G. (2016). Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis. Theoretical and Applied Economics, 3(608), 127-140.Kmenta, J. (1986). Elements of Econometrics. 2nd ed. New York: Macmillan.Kobeissi, N. (2005). Impact of Governance, Legal System and Economic Freedom on Foreign Investment in the MENA Region. Journal of Comparative International Management, 8(1):20-41.Moran, T.H. (1998). Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies in Transition. Washington D.C, Institute of International Economics.Parks, R. (1967). Efficient Estimation of a System of Regression Equations When Disturbances Are Both Serially and Contemporaneously Correlated. Journal of the American Statistical Association 62: 500–509.Pesaran, H. (2006). A simple panel unit root test in the presence of cross section dependence, Cambridge University, Working Paper, No: 0346.Quazi, R. (2007). Economic Freedom and Foreign Direct Investment in East Asia, Journal of the Asia Pacific Economy, 12(3):329-344.Quazi, R. and Rashid, S. (2004). Economic Freedom and Foreign Direct Investment in Developing Countries. The International Journal of Business and Public Administration, 2(1):92–99.Sucu, M. B. (2017). Yükselen Piyasa Ekonomilerinde Ekonomik Özgürlük, Büyüme ve Kalkınma İlişkisi: Bir Panel Veri Analizi, Bulletin of Economic Theory and Analysis, II, (2), 135-167.Tunçsiper, B. & Biçer, Ö.F. (2014). Ekonomik Özgürlükler ve Ekonomik Büyüme Arasındaki İlişkinin Panel Regresyon Yöntemiyle İncelenmesi. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 9(2), 25‐ 45Türen, U., Gökmen, Y. & Dilek, H. (2011). Ekonomik Özgürlük Endeksinin Yurt Dışına Doğrudan Yabancı Yatırım Yapan Türk Sermayesinin Ülke Seçim Kararına Etkisi Var mıdır?. Maliye Dergisi, 161, 298-325.Vergili, H. & Karaca, Ç. (2010). Gelişmekte Olan Ülkelere Yönelik Uluslararası Sermaye Hareketlerinin Ekonomik Büyüme Üzerindeki Etkisi: Panel Veri Analizi, Ege Akademik Bakiş, 10, (4), 1207-1216.Wang M & Wong M.C.S. (2009) Foreign direct investment and economic growth: the growth accounting perspective. Econ Inq 47(4):701–710Woo, J. (2009) Productivity growth and technological diffusion through foreign direct investment. Econ Inq 47(2):226–248.Wooldridge, J. M. (2013). Introductory Econometrics: A Modern Approach (Fifth international ed.). Australia: South-Western. pp. 82–83. ISBN 978-1-111-53439-4.
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Details

Primary Language English
Journal Section Konferans Bildirisi
Authors

Murat Akkaya 0000-0002-7071-8662

Publication Date April 30, 2019
Submission Date August 17, 2018
Published in Issue Year 2019 Volume: 22 Issue: 1

Cite

APA Akkaya, M. (2019). The Relationship Between Direct Foreign Capital Investment, Economic Freedom And Economic Growth In Emerging Markets. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 22(1), 1-10. https://doi.org/10.29249/selcuksbmyd.454388

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