THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON ECONOMIC GROWTH AND EXPORT: AN EMPIRICAL ANALYSIS ON D8 COUNTRIES


Engin Öztürk M. B.

The Journal of Social Science, cilt.4, ss.102-109, 2020 (Diğer Kurumların Hakemli Dergileri)

  • Cilt numarası: 4 Konu: 7
  • Basım Tarihi: 2020
  • Dergi Adı: The Journal of Social Science
  • Sayfa Sayıları: ss.102-109

Özet

The level of national income is an indicator for the level of development. Besides, when the

population is taken into account for the potential of the country, income per capita becomes also

important. Foreign direct investments (FDI), are important for economic growth and foreign trade

especially for developing countries. Developing countries try to attract foreign investments to improve

their economies. Because, the economic growth theory suggests that accumulation of capital

contributes to economic growth. The aim of this study is to investigate the effect of foreign direct

investments on economic growth and export in D-8 countries, which is an organization for economic

cooperation, namely Bangladesh, Indonesia, Malaysia, Pakistan, Nigeria, Egypt, Iran and Turkey. For

this aim the dynamic panel data analysis is used to investigate the effect of foreign direct investments

on economic growth and export for those countries over the period 1994-2018 and the findings of this

study reveal that foreign direct investments have positive and significant effect on both growth and

export.

Key Words: Foreign Direct Investments, Export, Growth, D8