THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON ECONOMIC GROWTH AND EXPORT: AN EMPIRICAL ANALYSIS ON D8 COUNTRIES
THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON ECONOMIC GROWTH AND EXPORT: AN EMPIRICAL ANALYSIS ON D8 COUNTRIES

Summary/Abstract: The level of national income is an indicator for the level of development. Besides, when the population is taken into account for the potential of the country, income per capita becomes also important. Foreign direct investments (FDI), are important for economic growth and foreign trade especially for developing countries. Developing countries try to attract foreign investments to improve their economies. Because, the economic growth theory suggests that accumulation of capital contributes to economic growth. The aim of this study is to investigate the effect of foreign direct investments on economic growth and export in D-8 countries, which is an organization for economic cooperation, namely Bangladesh, Indonesia, Malaysia, Pakistan, Nigeria, Egypt, Iran and Turkey. For this aim the dynamic panel data analysis is used to investigate the effect of foreign direct investments on economic growth and export for those countries over the period 1994-2018 and the findings of this study reveal that foreign direct investments have positive and significant effect on both growth and export.

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