Yildiran M.

Asya Araştırmaları Uluslararası Sosyal Bilimler Dergisi, vol.5, no.1, pp.53-68, 2021 (Peer-Reviewed Journal)


This study investigates the effect of foreign direct investments, resource revenues, and public expenditures on economic growth in the period of 1996-2019 in Turkmenistan's economy, using VAR analysis. According to the findings of the cointegration analysis, there is a long-term relationship between real growth and these three variables. On the other hand, according to the Granger causality test, there is a positive causality relationship from real growth to FDI and from public expenditure to FDI in the short run (10% significance level). Besides, there is a bidirectional positive causality relationship between resource income and growth. There is no causality relationship between other variables. The third finding of the study is that the impact of direct foreign investments on growth is relatively large. Also, it is concluded that the effect of foreign direct investments on growth is relatively more important in the variance decomposition