The relationship between economic risk and foreign direct investment: the case of turkey

Foreign direct investment (FDI) in the developing countries, is considered as an important determinant for developing and shaping the investment. The aim of this study economic risk, and macro-economic variables to investigate the impact of these investments. For this purpose, 2003: 1-2014: 1 period in the study of economic risk, foreign direct investment, and time series analysis of the relationship between macroeconomic variables was tested. The variables used in the study; foreign direct investment, the real exchange rate and economic risk, inflation and current account deficit is made of. According to the results, FDI is affected positively from economic risk the current account deficit, and inflation. FDI is also affected negatively from the real exchange rate. Economic evidence is determined to be bidirectional causality relationship between foreign direct investment and economic risks. The study also of the current account deficit and foreign direct investment are determined to one-way causality from inflation towards the inflation