Abstract
Purpose: The purpose of this research is to examine the impact of foreign direct investments (FDI) and gross fixed capital formations (GFC) on poverty reduction in Türkiye. Design/Methodology: In this study, which analyzes the impact of investments on poverty, two different models were established. The models constructed using 1982-2020 annual data were analyzed with the ARDL method. Findings: As a result of the analysis, both foreign direct investments and gross fixed capital formations have positive (poverty reducing) effects on poverty reduction in Türkiye. Gross fixed capital formations are more effective in reducing poverty than foreign direct investments. Limitations: The number of poor people in Türkiye is accessed discretely. This situation has led to a limited number of empirical studies in the field of economics in Türkiye that use time series analyses related to poverty. In this study, this constraint is overcome by using household final consumption expenditures per capita (HFC) as a proxy variable as in the literature. Originality/Value: In this study, two separate models were established with foreign direct investments and gross fixed capital formations as independent variables. The comparison of the impact of these two types of investment variables on poverty in Türkiye reveals the originality of this study.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have