The relationship between foreign direct investment and current account through profit outflows: The Turkish case
The developing world invites Foreign Direct Investment (FDI) to their countries nearly unconditionally for the developmental benefits. However, in literature there are concerns regarding ‘unfettered FDI’ in terms of several factors including FDI outflows which contribute to Current Account Deficits....
Gespeichert in:
| Veröffentlicht in: | Ekonomski vjesnik 2020-01, Vol.33 (2), p.605-619 |
|---|---|
| 1. Verfasser: | |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 619 |
|---|---|
| container_issue | 2 |
| container_start_page | 605 |
| container_title | Ekonomski vjesnik |
| container_volume | 33 |
| creator | Hayali, Ayca Sarialioglu |
| description | The developing world invites Foreign Direct Investment (FDI) to their countries nearly unconditionally for the developmental benefits. However, in literature there are concerns regarding ‘unfettered FDI’ in terms of several factors including FDI outflows which contribute to Current Account Deficits. This paper investigates the relationship between FDI and profit outflows on the case of Turkey via economic causality analysis through Granger causality test using a method developed by Toda and Yamamoto (1995) and the impulse-response analysis. The results indicate that although there are short-term positive effects of FDI inflows in terms of current account financing, the causality results point to the long-term adverse effects of FDI inflows on profit remittance leading to current account deficit, which is an issue that policy makers should consider when trying to attract FDI. |
| format | Article |
| fullrecord | <record><control><sourceid>ceeol_proqu</sourceid><recordid>TN_cdi_proquest_journals_2476175217</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><ceeol_id>921549</ceeol_id><sourcerecordid>921549</sourcerecordid><originalsourceid>FETCH-LOGICAL-c134t-9130225eab0de182d36352540f84aaaf4e2ebd13aba559dbe5b656e809a480a03</originalsourceid><addsrcrecordid>eNpFjktLxDAcxIMoWNb9Bh4Cngt5to03WXzBgpcK3pY0_XebtSY1D_frW13BucwcfszMGSpoI-qSMVKdo4JwyUsu1dslWsd4IItkrRThBZrbEXCASSfrXRztjDtIRwCHBx_A7h3ubQCTsHVfENMHuIS167HJIfxmY3xePI3B5_2I5-AHm7DPaZj8Md7in_42h3cbR2x0hCt0MegpwvrPV-j14b7dPJXbl8fnzd22NJSLVCrKCWMSdEd6oA3recUlk4IMjdBaDwIYdD3lutNSqr4D2VWygoYoLRqiCV-hm1Pv8ugzL9d3B5-DWyZ3TNQVrSWj9UJdnygD4Kd_RDEqheLfYQ1jLw</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2476175217</pqid></control><display><type>article</type><title>The relationship between foreign direct investment and current account through profit outflows: The Turkish case</title><source>DOAJ Directory of Open Access Journals</source><source>Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals</source><creator>Hayali, Ayca Sarialioglu</creator><creatorcontrib>Hayali, Ayca Sarialioglu</creatorcontrib><description>The developing world invites Foreign Direct Investment (FDI) to their countries nearly unconditionally for the developmental benefits. However, in literature there are concerns regarding ‘unfettered FDI’ in terms of several factors including FDI outflows which contribute to Current Account Deficits. This paper investigates the relationship between FDI and profit outflows on the case of Turkey via economic causality analysis through Granger causality test using a method developed by Toda and Yamamoto (1995) and the impulse-response analysis. The results indicate that although there are short-term positive effects of FDI inflows in terms of current account financing, the causality results point to the long-term adverse effects of FDI inflows on profit remittance leading to current account deficit, which is an issue that policy makers should consider when trying to attract FDI.</description><identifier>ISSN: 0353-359X</identifier><identifier>EISSN: 1847-2206</identifier><language>eng</language><publisher>Osijek: Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku</publisher><subject>Causality ; Current accounts ; Developing countries ; Economic activity ; Emerging markets ; Foreign investment ; Global economy ; LDCs ; Liberalization ; National Economy ; Portfolio investments ; Privatization ; Socio-Economic Research</subject><ispartof>Ekonomski vjesnik, 2020-01, Vol.33 (2), p.605-619</ispartof><rights>2020. This work is published under https://creativecommons.org/licenses/by-nc-nd/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Uhttps://www.ceeol.com//api/image/getissuecoverimage?id=picture_2020_58322.jpg</thumbnail><link.rule.ids>314,777,781</link.rule.ids></links><search><creatorcontrib>Hayali, Ayca Sarialioglu</creatorcontrib><title>The relationship between foreign direct investment and current account through profit outflows: The Turkish case</title><title>Ekonomski vjesnik</title><addtitle>EKONOMSKI VJESNIK / ECONVIEWS : REVIEW OF CONTEMPORARY BUSINESS, ENTREPRENEURSHIP AND ECONOMIC ISSUES</addtitle><description>The developing world invites Foreign Direct Investment (FDI) to their countries nearly unconditionally for the developmental benefits. However, in literature there are concerns regarding ‘unfettered FDI’ in terms of several factors including FDI outflows which contribute to Current Account Deficits. This paper investigates the relationship between FDI and profit outflows on the case of Turkey via economic causality analysis through Granger causality test using a method developed by Toda and Yamamoto (1995) and the impulse-response analysis. The results indicate that although there are short-term positive effects of FDI inflows in terms of current account financing, the causality results point to the long-term adverse effects of FDI inflows on profit remittance leading to current account deficit, which is an issue that policy makers should consider when trying to attract FDI.</description><subject>Causality</subject><subject>Current accounts</subject><subject>Developing countries</subject><subject>Economic activity</subject><subject>Emerging markets</subject><subject>Foreign investment</subject><subject>Global economy</subject><subject>LDCs</subject><subject>Liberalization</subject><subject>National Economy</subject><subject>Portfolio investments</subject><subject>Privatization</subject><subject>Socio-Economic Research</subject><issn>0353-359X</issn><issn>1847-2206</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2020</creationdate><recordtype>article</recordtype><sourceid>REL</sourceid><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>AZQEC</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><recordid>eNpFjktLxDAcxIMoWNb9Bh4Cngt5to03WXzBgpcK3pY0_XebtSY1D_frW13BucwcfszMGSpoI-qSMVKdo4JwyUsu1dslWsd4IItkrRThBZrbEXCASSfrXRztjDtIRwCHBx_A7h3ubQCTsHVfENMHuIS167HJIfxmY3xePI3B5_2I5-AHm7DPaZj8Md7in_42h3cbR2x0hCt0MegpwvrPV-j14b7dPJXbl8fnzd22NJSLVCrKCWMSdEd6oA3recUlk4IMjdBaDwIYdD3lutNSqr4D2VWygoYoLRqiCV-hm1Pv8ugzL9d3B5-DWyZ3TNQVrSWj9UJdnygD4Kd_RDEqheLfYQ1jLw</recordid><startdate>20200101</startdate><enddate>20200101</enddate><creator>Hayali, Ayca Sarialioglu</creator><general>Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku</general><general>Josip Juraj Strossmayer University of Osijek, Faculty of Economics in Osijek</general><general>J.J. Strossmayer University of Osijek, Faculty of Economics</general><scope>AE2</scope><scope>BIXPP</scope><scope>REL</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>AZQEC</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>BYOGL</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FRNLG</scope><scope>F~G</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>PIMPY</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>Q9U</scope></search><sort><creationdate>20200101</creationdate><title>The relationship between foreign direct investment and current account through profit outflows: The Turkish case</title><author>Hayali, Ayca Sarialioglu</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c134t-9130225eab0de182d36352540f84aaaf4e2ebd13aba559dbe5b656e809a480a03</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2020</creationdate><topic>Causality</topic><topic>Current accounts</topic><topic>Developing countries</topic><topic>Economic activity</topic><topic>Emerging markets</topic><topic>Foreign investment</topic><topic>Global economy</topic><topic>LDCs</topic><topic>Liberalization</topic><topic>National Economy</topic><topic>Portfolio investments</topic><topic>Privatization</topic><topic>Socio-Economic Research</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Hayali, Ayca Sarialioglu</creatorcontrib><collection>Central and Eastern European Online Library (C.E.E.O.L.) (DFG Nationallizenzen)</collection><collection>CEEOL: Open Access</collection><collection>Central and Eastern European Online Library</collection><collection>ProQuest Central (Corporate)</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central Essentials</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>East Europe, Central Europe Database</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>Publicly Available Content Database</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ProQuest Central Basic</collection><jtitle>Ekonomski vjesnik</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Hayali, Ayca Sarialioglu</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>The relationship between foreign direct investment and current account through profit outflows: The Turkish case</atitle><jtitle>Ekonomski vjesnik</jtitle><addtitle>EKONOMSKI VJESNIK / ECONVIEWS : REVIEW OF CONTEMPORARY BUSINESS, ENTREPRENEURSHIP AND ECONOMIC ISSUES</addtitle><date>2020-01-01</date><risdate>2020</risdate><volume>33</volume><issue>2</issue><spage>605</spage><epage>619</epage><pages>605-619</pages><issn>0353-359X</issn><eissn>1847-2206</eissn><abstract>The developing world invites Foreign Direct Investment (FDI) to their countries nearly unconditionally for the developmental benefits. However, in literature there are concerns regarding ‘unfettered FDI’ in terms of several factors including FDI outflows which contribute to Current Account Deficits. This paper investigates the relationship between FDI and profit outflows on the case of Turkey via economic causality analysis through Granger causality test using a method developed by Toda and Yamamoto (1995) and the impulse-response analysis. The results indicate that although there are short-term positive effects of FDI inflows in terms of current account financing, the causality results point to the long-term adverse effects of FDI inflows on profit remittance leading to current account deficit, which is an issue that policy makers should consider when trying to attract FDI.</abstract><cop>Osijek</cop><pub>Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku</pub><tpages>15</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0353-359X |
| ispartof | Ekonomski vjesnik, 2020-01, Vol.33 (2), p.605-619 |
| issn | 0353-359X 1847-2206 |
| language | eng |
| recordid | cdi_proquest_journals_2476175217 |
| source | DOAJ Directory of Open Access Journals; Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals |
| subjects | Causality Current accounts Developing countries Economic activity Emerging markets Foreign investment Global economy LDCs Liberalization National Economy Portfolio investments Privatization Socio-Economic Research |
| title | The relationship between foreign direct investment and current account through profit outflows: The Turkish case |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-18T10%3A54%3A19IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-ceeol_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=The%20relationship%20between%20foreign%20direct%20investment%20and%20current%20account%20through%20profit%20outflows:%20The%20Turkish%20case&rft.jtitle=Ekonomski%20vjesnik&rft.au=Hayali,%20Ayca%20Sarialioglu&rft.date=2020-01-01&rft.volume=33&rft.issue=2&rft.spage=605&rft.epage=619&rft.pages=605-619&rft.issn=0353-359X&rft.eissn=1847-2206&rft_id=info:doi/&rft_dat=%3Cceeol_proqu%3E921549%3C/ceeol_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2476175217&rft_id=info:pmid/&rft_ceeol_id=921549&rfr_iscdi=true |