TY  - JOUR
TI  - THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON THE ECONOMIC GROWTH OF THE MEDITERRANEAN COUNTRIES: CASE OF TURKEY AND MOROCCO
AB  - Purpose of this research is to analyze the impacts of foreign directinvestment on the economic growth of the Mediterranean countries: case ofMorocco and Turkey. The study aims to unveil if the FDI has always apositive impacts on the economic growth and showing by a comparativeanalysis the effects of foreign direct investment on the economic growthbetween Morocco and Turkey. The study was done by using the panel databetween the period 1990-2016 and by utilizing the Vector Error CorrectionModel (VECM) methodology.The collected data from the world bank of theboth countries were analyzed by using the tools, the Augmented DickeyFuller (ADF) test, then Johansen test for Cointegration, there after VECM,and finally Impulse Response Function (IRF). The ADF test results indicatethat all variables became stationary after taking the first difference, andthey be integrated of order one I (1). Johansen Cointegration test resultsmeans that these four variables have a long run association shape, whichargue the existence of a cointegration among the variables. In Morocco,Normalised long run estimates indicated FDI has a significant negativeconnection with economic growth, while the export and investment werefound to have a significant positive impact on the economic growth.However, Labor has an insignificant negative impact on the economicgrowth, though statistically insignificant. From the estimated short run, itnoticed that most of the variables are statistically insignificant .Impulseresponse function displayed that the reaction of a shock on foreign directinvestment and export was positive, whereas the reaction to a shock in forcelabor and investment was negative. On the other hand, in Turkey,Normalised long run estimates showed. That all the variables have asignificant positive linkage with economic growth. From the estimated shortrun, it has shown that most of the variables are statistically insignificant. Impulse response function (IRF) can be seen that following a shock to FDI,export, investment and force labor, The GDP was found to respond positivelyfrom the first period horizon up to the tenth period.
AU  - Ersoy, Ahmet Yağmur
AU  - AALIOUA, Mohamed
DO  - 10.7827/TurkishStudies.13511
PY  - 2018
JO  - Turkish Studies (Elektronik)
VL  - 13
IS  - 14
SN  - 1308-2140
SP  - 67
EP  - 82
DB  - TRDizin
UR  - http://search/yayin/detay/301450
ER  -