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Journals / Journal of Politics Economy and Management / 2025 / Cilt: 8 Sayı: 2

The relationship between foreign direct investment and economic complexity in emerging markets: Evidence from panel cointegration and CCEMG analysis

Gelişmekte olan piyasalarda doğrudan yabancı yatırım ve ekonomik karmaşıklık ilişkisi: Panel eşbütünleşme ve CCEMG analizinden kanıtlar

Muharrem Akın Doğanay(Karadeniz Teknik Üniversitesi İİBF iktisat Bölümü)0000-0002-3985-2222
Pages
47–62
Publication Date
2025-12-30
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The findings indicated that increases in foreign direct investment positively affect economic complexity in the long run.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The purpose of this research is to empirically test the relationships between foreign direct investments and economic complexity of countries, specifically in emerging market economies.
📊
Key Findings & Data:In this study, the relationship between foreign direct investment and economic complexity in emerging market economies over the period 2001-2023 is empirically examined using Westerlund (2008) panel cointegration test and the common correlated effects mean group (CCEMG) method.
💡
Conclusion & Impact:The findings indicated that increases in foreign direct investment positively affect economic complexity in the long run.
🔬Design:Araştırma Makalesi
📍Scope:2001-2023 Verileri
⚙️Variables:Doğrudan yabancı yatırım · ekonomik karmaşıklık · gelişmekte olan piyasalar

Abstract

The purpose of this research is to empirically test the relationships between foreign direct investments and economic complexity of countries, specifically in emerging market economies. In this study, the relationship between foreign direct investment and economic complexity in emerging market economies over the period 2001-2023 is empirically examined using Westerlund (2008) panel cointegration test and the common correlated effects mean group (CCEMG) method. The findings indicated that increases in foreign direct investment positively affect economic complexity in the long run. However, this effect is limited in terms of economic size. The significant, negatively signed error correction term indicates that the system is converging to magnitude its long-run equilibrium. However, the results across countries exhibit significant heterogeneity. While countries such as Brazil and Chile benefit positively from foreign direct investment, this effect is limited in China and Thailand, and no effect is observed in Türkiye and Poland due to institutional and structural obstacles.

Özet

Bu çalışmanın amacı, gelişmekte olan piyasa ekonomileri özelinde doğrudan yabancı yatırımlar ile ülkelerin ekonomik karmaşıklık seviyesi arasındaki ilişkileri ampirik olarak test etmektir. 2001-2023 döneminde gelişmekte olan piyasa ekonomilerinde doğrudan yabancı yatırım ile ekonomik karmaşıklık arasındaki ilişki, Westerlund (2008) panel eşbütünleşme testi ve ortak ilişkili etkiler ortalama tahmincisi (CCEMG) yöntemiyle ampirik olarak incelenmektedir. Elde edilen bulgulara göre doğrudan yabancı yatırımlardaki artışlar, uzun dönemde ekonomik karmaşıklığı pozitif yönde etkilemektedir. Ancak bu etkinin ekonomik büyüklük açısından sınırlı olduğunu söylemek mümkündür. Anlamlı ve negatif işaretli hata düzeltme terimi, sistemin uzun dönem dengesine yakınsadığını göstermektedir. Bununla birlikte, ülke bazındaki sonuçlar belirgin bir heterojenlik sergilemektedir. Brezilya ve Şili gibi ülkeler doğrudan yabancı yatırımlardan olumlu yönde faydalanırken, Çin ve Tayland’da bu etki sınırlı kalmakta; Türkiye ve Polonya’da ise kurumsal ve yapısal engeller nedeniyle bir etki gözlemlenememektedir.

🔖

Cite This Article

Doğanay, M. A. (2025). The relationship between foreign direct investment and economic complexity in emerging markets: Evidence from panel cointegration and CCEMG analysis. Journal of Politics Economy and Management, Cilt: 8 Sayı: 2, 47–62. https://ajindex.com/articles/1511635

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