ANALYSIS OF THE RELATIONSHIP BETWEEN RENEWABLE ENERGY AND FOREIGN DIRECT INVESTMENTS FOR TURKEY

Foreign direct investments provide advantages in the growth and development processes of countries. The increase in foreign direct investments with the globalization process in the last 50 years has created some effects on the economies of countries, especially on economic growth and employment opportunities. Among these effects, it is known that foreign direct investments have effects on the energy sector. The renewable energy sector, which is a rising area of the energy sector, is also positively or negatively affected by foreign direct investments. For this reason, the aim of the study is to examine the relationship between 1990-2019 data and renewable energy consumption in Turkey, foreign direct investments and GDP. In this study, Banerjee et al. (2017) Fourier ADL cointegration test analysis was used. According to the results of the analysis, there is no cointegration relationship between foreign direct investments, renewable energy consumption and GDP in Turkey. It is thought that renewable energy consumption will increase if foreign direct investments in Turkey are realized in a way that supports clean energy areas and usage.