The Relationship between the Internet and Foreign Direct Investments in Turkey: The Toda-Yamamoto Causality Approach

Abstract

This study aims to determine the relationship between foreign direct investments and the internet in Turkey. The relationship in question is researched by using annual variables for the 1993-2017 periods with the help of Toda-Yamamoto causality testing. According to the findings acquired, there is a bi-directional causal relationship between foreign direct investments and the internet. The importance of this conclusion is that it detects the increase in foreign direct investments as the number of internet users in Turkey increases. Accordingly, it can be stated that investments in the internet use can promote the inflow of foreign direct investments.