THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND TRADE: A CASE STUDY FOR THE TURKISH SERVICE SECTOR
THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND TRADE: A CASE STUDY FOR THE TURKISH SERVICE SECTOR

Summary/Abstract: The aim of this study is to analyze the causal link between the inward foreign direct investments (FDI), import service sector, and export service sector over a period of time beginning with 1980 which lasts till 2012 by using the VEC Granger Causality/Block Exogeneity Wald Tests. Our findings showed that there is a bilateral causality between the import services and the inward FDI. However, there is a strong evidence of the unidirectional causality from the export services to the import services, and the inward FDI.

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