The Impact of Uncertainty on Foreign Direct Investment: A Time-Varying Causality Analysis
The Impact of Uncertainty on Foreign Direct Investment: A Time-Varying Causality Analysis
Author(s): Bağdat Sıla AvciSubject(s): National Economy, International relations/trade, Financial Markets, Socio-Economic Research
Published by: Kafkas Üniversitesi Sağlık, Kültür ve Spor Daire Başkanlığı Dijital Baskı Merkezi
Keywords: Uncertainty; foreign direct investment; causality;
Summary/Abstract: The purpose of this study is to examine the causal relationship from uncertainty to foreign direct investment in Türkiye during the period 2006Q2-2024Q4. Considering that fluctuations and uncertainty seen in the economy affect investment decisions, the study initially examines the causal relationship from uncertainty to foreign direct investment using the Hacker and Hatemi-J causality analysis. Then, recognizing that the causal relationship between the variables may change over time, a time-varying causality analysis is conducted. As a result of the study, it was observed that there is no causal relationship from uncertainty to foreign direct investment in Türkiye during the period 2006Q2-2024Q4. However, the time-varying causality analysis reveals a causal relationship from uncertainty to foreign direct investment during the sub-periods 2010Q2- 2011Q1, 2019Q4-2020Q3, 2021Q4-2022Q4, 2023Q2-2023Q4, 2024Q1-2024Q4.
Journal: Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
- Issue Year: 17/2026
- Issue No: 33
- Page Range: 294-316
- Page Count: 23
- Language: English
