The Examination of the Relationship Between Foreign Direct Investment and Trade in Turkey: ARDL Approach

  • Karimov Mehman Ilham Department of Finance and Economic theory, Azerbaijan State Agricultural University
  • Nesirov Elcin Vaqif Department of Agricultural Economics, Azerbaijan State Agricultural University
  • Zeynalli Elay Calal Department of Accounting and audit, Azerbaijan State Agricultural University

Abstract

This paper is aimed to examine the effect of Foreign Direct Investment inflow on Trade (Export, Import) in Turkey. The study copes the time span from 2006 Q2 to 2019 Q4. The time series datasets, those are retrieved from CBT and FRED database are used in applied econometrical methods such as ADF, PP, Zivot Andrews Unit Root Tests, ARDL bounds testing approach, and the Granger Causality tests, to accomplish the statistical part of the research. Based on the findings, it was supported that there was a positive relationship between FDI and Trade. Additionally, the outputs of Granger causality test indicated that there is a unidirectional causality running from FDI to Trade (Export and Import).

Published
2023-10-03
How to Cite
Ilham, K. M., Vaqif, N. E., & Calal, Z. E. (2023). The Examination of the Relationship Between Foreign Direct Investment and Trade in Turkey: ARDL Approach. Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 33(4), 117-144. Retrieved from https://publicatii.uvvg.ro/index.php/studiaeconomia/article/view/770
Issue
Vol. 33 No. 4 (2023): Studia Universitatis „Vasile Goldiș” Arad - Economics Series
Section
Articles