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Effects of sovereign credit ratings on foreign direct investment inflows: Evidence from Turkey

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This study examines the relationship between the sovereign credit ratings of Turkey and foreign direct investment inflows during the period from January 1995 to July 2013 in Turkey by using cointegration, VAR Granger causality, vector error correction model, vector autoregression and impulse-response analyses. We find that there is a positive relationship between foreign direct investment inflows and sovereign credit ratings and the sovereign credit rating by S&P is the predominant one on the foreign direct investment inflows.
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Effects of sovereign credit ratings on foreign direct investment inflows: Evidence from Turkey

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