Does Corruption Deteriorate FDI inflows in the Long run?: The Case of Türkiye


Yalçın H., Koyuncu C.

XXII. IBANESS Congress Series on Economics, Business and Management – Ohrid / Republic of North Macedonia, Ohrid, Makedonya, 12 - 13 Ekim 2024, ss.227-234, (Tam Metin Bildiri)

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Basıldığı Şehir: Ohrid
  • Basıldığı Ülke: Makedonya
  • Sayfa Sayıları: ss.227-234
  • Bilecik Şeyh Edebali Üniversitesi Adresli: Evet

Özet

The adverse influences of corruption for an economy has been extensively examined and discussed in the literature from various perspectives for several decades. Foreign direct investments (FDI) opt to choose countries possessing well established and stable democracy, judicial system, human rights, politically system and fighting against corruption. This study investigates the long run association between corruption and FDI inflows for Türkiye by utilizing a dataset covering the years of 2002-2022 and by employing ARDL estimation technique. We used two distinct measures of FDI inflows (i.e, foreign direct investment, net inflows (% of GDP) and foreign direct investment, net inflows (BoP, current US$)). ARDL bounds test results imply that corruption and FDI inflows are cointegrated and so they move together in the long run. According to the long run coefficient estimation results, corruption statistically significantly worsens FDI inflows during the period of 2002-2022 in Türkiye. In other words, one percent rise in corruption decreases foreign direct investment net inflows measured as % of GDP by %0.469530 while one percent increase in corruption lessens foreign direct investment net inflows measured as current US$ by %2.589197.