FOREIGN INFLOWS, TRADE AND ECONOMIC GROWTH: EVIDENCE FROM A NEWLY INDUSTRIALIZED COUNTRY

The current paper analyzes the underlying relations between Foreign Inflows, Trade and Economic Growth in the case of Turkey over the period 1970-2019. The novel technique of ARDL is applied to investigate the presence of a long- and short-run relationship amongst Foreign Inflows, Trade and Economic Growth. The findings revealed the existence of a cointegrating relationship among the variables. Further, outward inflows and export are the key elements of economic progress in the long run in Turkey. Many important inferences can be made from the estimation results in the study such as the concerned authorities should focus on increasing stockholders' confidence in the country by reducing political uncertainty and providing a favorable environment to foreign investors. Further attention should be paid towards the amount and productivity of external investment flowing in the country in such a way that optimum growth can be achieved.