THE EFFECTS OF FOREIGN DIRECT INVESTMENT (FDI) ON TOTAL FACTOR PRODUCTIVITY (TFP): THE CASE OF TÜRKİYE

Authors : Derya Hekim

Pages : 197-208

Doi:10.18092/ulikidince.1676716

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Publication Date : 2025-10-29

Article Type : Research Paper

Abstract :The aim of this study is to empirically investigate the short- and long-run effects of foreign direct investment (FDI) on total factor productivity (TFP) in Türkiye for the period 1990-2023. The methodology of this study involves analyzing the relationship between TFP—calculated using the growth accounting approach—and FDI stock, financial development, and human capital variables through the ARDL bounds testing approach. The findings of this study indicate that FDI has a positive and significant effect on TFP in the short run, whereas this effect disappears in the long run. Additionally, only financial development is found to have a significant and positive effect on TFP in the long run, while human capital does not have a significant impact on TFP in either the short or long run. In sum, FDI has positive effect in the short run, but this effect diminishes in the long run.
Keywords : Doğrudan Yabancı Yatırım (DYY), Toplam Faktör Verimliliği (TFV), Büyüme Muhasebesi, ARDL Sınır Testi, Finansal Kalkınma

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