Does Foreign Direct Investment Affect Macroeconomic Dynamics? An S-VAR Approach for Turkey

This study analyzes the effects of foreign direct investments (FDI) on macroeconomic dynamics Turkish economy through Structural Vector Autoregressive (SVAR) model. The results obtained, by economic theory, reveal positive FDI growth and domestic investment volume. also confirm assumption theory that are complementary. It is understood put some pressure prices to increase, but it balanced decisions monetary authority. While does not play a critical role in reducing unemployment, significantly contributes increase imports, especially capital goods.