Finansal Globalization, Crisis And Economic Growth: A Study In The Example Of Emerging Market Countries

In this study, using the datum in 1985?2008, foreign direct capital investments, portfolio investments and the effects of the crises to the economic growth process in the sample of Brazil, South Korea and Turkey are analyzed by means of co-integration and causality tests. According to the results of cointegration test, while portfolio investments and foreign direct capital investments influence the economic growth positively, economic crises in the examined countries influence the growth negatively. While Portfolio investments contribute to the growth in Turkey and Brazil, direct investments contribute to the growth in South Korea. According to Granger causality test, there is one way causation relation from foreign direct capital, portfolio investments and crises to the growth in Brazil. In Korea there are bidirectional causation relations between portfolio investments and economic crises. Moreover, there is unilateral causation from portfolio investments and variable crisis to economic growth, from variable crisis to foreign direct capital investments. While portfolio investments and crisis influence economic growth in unilateral, there is bidirectional interactions between foreign direct investments and economic growth.