Are Development Goals Enough to Attract Foreign Direct Investment?

Yunus Gülcü

Article Details

Are Development Goals Enough to Attract Foreign Direct Investment?

Authors:

Yunus Gülcü

Publisher:

Ahmet Arif EREN

Main Topics:

Kalkınma Ekonomisi - Makro

Journal:

Politik Ekonomik Kuram Vol.8 Issue 3, pp.572-580

Document Type:

Article

Publication Date:

9/2024

Document Language:

English

Document ID (Org No.):

2001328068

pISSN:

2587-2567

Keywords:

Abstract:

 This study investigates whether development goals contribute to economic growth in countries with the highest share of foreign direct investment in the world economy. It is concluded that there is cross-sectional dependence and unit root at level value in foreign direct investment, gross domestic product and sustainable development index. Since there is a long-run relationship in the model, a panel vector error correction model is constructed. In the short run, there is no causality from gross domestic product and sustainable development index to foreign direct investment. However, in the long run, such causality is obtained. On a country basis, there is causality from Sustainable Development Goals to FDI in Estonia, Finland and Germany. In Japan, Poland, Colombia, Latvia, Finland and Slovak Rep. there is causality from Gross Domestic Product to FDI. These findings suggest that long-term strategic planning and development goals play a critical role in attracting foreign capital. Moreover, analyzing the effects of different countries emphasis on development goals and economic structures on foreign capital attraction provides important clues for future policy-making processes.

 This study investigates whether development goals contribute to economic growth in countries with the highest share of foreign direct investment in the world economy. It is concluded that there is cross-sectional dependence and unit root at level value in foreign direct investment, gross domestic product and sustainable development index. Since there is a long-run relationship in the model, a panel vector error correction model is constructed. In the short run, there is no causality from gross domestic product and sustainable development index to foreign direct investment. However, in the long run, such causality is obtained. On a country basis, there is causality from Sustainable Development Goals to FDI in Estonia, Finland and Germany. In Japan, Poland, Colombia, Latvia, Finland and Slovak Rep. there is causality from Gross Domestic Product to FDI. These findings suggest that long-term strategic planning and development goals play a critical role in attracting foreign capital. Moreover, analyzing the effects of different countries emphasis on development goals and economic structures on foreign capital attraction provides important clues for future policy-making processes.

 This study investigates whether development goals contribute to economic growth in countries with the highest share of foreign direct investment in the world economy. It is concluded that there is cross-sectional dependence and unit root at level value in foreign direct investment, gross domestic product and sustainable development index. Since there is a long-run relationship in the model, a panel vector error correction model is constructed. In the short run, there is no causality from gross domestic product and sustainable development index to foreign direct investment. However, in the long run, such causality is obtained. On a country basis, there is causality from Sustainable Development Goals to FDI in Estonia, Finland and Germany. In Japan, Poland, Colombia, Latvia, Finland and Slovak Rep. there is causality from Gross Domestic Product to FDI. These findings suggest that long-term strategic planning and development goals play a critical role in attracting foreign capital. Moreover, analyzing the effects of different countries emphasis on development goals and economic structures on foreign capital attraction provides important clues for future policy-making processes.

 Bu çalışmada, dünya ekonomisinde doğrudan yabancı sermaye yatırımlarından en yüksek payı alan ülkelerde kalkınma hedeflerinin ekonomik büyümeye katkı sağlayıp sağlamadığı araştırılmaktadır. Doğrudan yabancı sermaye yatırımları, gayrisafi yurtiçi hasıla ve sürdürülebilir kalkınma endeksinde yatay kesit bağımlılığı ve düzey değerinde birim kök olduğu sonucuna ulaşılmaktadır. Modelde uzun dönemli ilişki bulunması nedeniyle panel vektör hata düzeltme modeli kurulmuştur. Kısa dönemde gayrisafi yurtiçi hasıla ve sürdürülebilir kalkınma endeksinden doğrudan yabancı sermaye yatırımlarına doğru nedensellik bulunmamaktadır. Ancak uzun dönemde bu nedensellik elde edilmektedir. Ülke bazında ise Estonya, Finlandiya ve Almanyada sürdürülebilir kalkınma hedeflerinden doğrudan yabancı sermaye yatırımlarına doğru nedensellik bulunmaktadır. Japonya, Polonya, Kolombiya, Letonya, Finlandiya ve Slovakyada gayrisafi yurtiçi hasıladan doğrudan yabancı sermaye yatırımlarına doğru nedensellik bulunmaktadır. Bu bulgular, uzun vadeli stratejik planlamaların ve kalkınma hedeflerinin yabancı sermaye çekmede kritik bir rol oynadığını göstermektedir. Ayrıca, farklı ülkelerin kalkınma hedeflerine verdikleri önemin ve ekonomik yapılarının, yabancı sermaye çekme üzerindeki etkilerinin analiz edilmesi, gelecekteki politika oluşturma süreçleri için önemli ipuçları sunmaktadır.

Article Details

Are Development Goals Enough to Attract Foreign Direct Investment?

Authors:

Yunus Gülcü

Publisher:

Ahmet Arif EREN

Main Topics:

Kalkınma Ekonomisi - Makro

Journal:

Politik Ekonomik Kuram Vol.8 Issue 3, pp.572-580

Document Type:

Article

Publication Date:

9/2024

Document Language:

English

Document ID (Org No.):

2001328068

pISSN:

2587-2567

Foreign Direct Investment

Sustainable Development Index

Panel DataDoğrudan Yabancı Yatırım

Sürdürülebilir Kalkınma Endeksi

Panel Data

Issues

Article Details

Are Development Goals Enough to Attract Foreign Direct Investment?

Authors: Yunus Gülcü

Publisher: Ahmet Arif EREN

Main Topics: Kalkınma Ekonomisi - Makro

Journal: Politik Ekonomik Kuram Vol.8 Issue 3, pp.572-580

Document Type: Article

Publication Date: 9/2024

Document Language: English

Document ID (Org No.): 2001328068

pISSN: 2587-2567

Foreign Direct Investment

Sustainable Development Index

Panel DataDoğrudan Yabancı Yatırım

Sürdürülebilir Kalkınma Endeksi

Panel Data

Issues

Authors:

Yunus Gülcü

Publisher:

Ahmet Arif EREN

Main Topics:

Kalkınma Ekonomisi - Makro

Journal:

Politik Ekonomik Kuram Vol.8 Issue 3, pp.572-580

Document Type:

Article

Publication Date:

9/2024

Document Language:

English

Document ID (Org No.):

2001328068

pISSN:

2587-2567