The Impact of Foreign Direct Investments on Unemployment in Turkey: ARDL Bound Test Analysis

Authors : Turgay Ceyhan

Pages : 38-52

View : 39 | Download : 55

Publication Date : 2025-01-29

Article Type : Research Paper

Abstract :Foreign direct investment made by multinational companies is of great importance in improving the macroeconomic dynamics of countries. Especially for less developed and developing countries, foreign direct investment is a favourite financing tool as it increases competition and efficiency in economies and accelerates economic development. FDI increases countriesˈ capital and savings levels and contributes to the countriesˈ employment thanks to the knowledge, skills and technological innovations they bring about. Thanks to these investments, the national income level increases as the quality of labor improves and the amount of labor employed in productive areas increases. The aim of this study is to investigate the impact of FDI on the UNEMP in Turkey. Within this context, analyzes were made using the ARDL bound test with data for the period 1988-2022. The findings show that there is no correlation between FDI and UNEMP in Turkey in the short-term. It has also been detected that the variables are not cointegrated and FDI in Turkey does not have an impact on UNEMP rates in the long-term.
Keywords : Doğrudan yabancı yatırım, işsizlik, ARDL sınır testi