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 UniversityGanja, Azerbaijan
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, Nesirov Elcin Vaqif
Department of Agricultural Economics, Azerbaijan State Agricultural UniversityGanja, Azerbaijan
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and Zeynalli Elay Calal
Department of Accounting and audit, Azerbaijan State Agricultural UniversityGanja, Azerbaijan
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Oct 06, 2023
About this article
Published Online: Oct 06, 2023
Page range: 117 - 144
Received: Sep 01, 2022
Accepted: Jan 01, 2023
DOI: https://doi.org/10.2478/sues-2023-0020
Keywords
© 2023 Karimov Mehman Ilham et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
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).