Another Perspective of The Effects of Migration as A Determinant of Foreign Direct Investment: Evidence-Based on Panel Gravity Model from Turkey and OECD Countries

Abstract

This paper aims to investigate the impact of immigration on FDI between Turkey and OECD countries. The paper uses data spanning the period 2003-2019. There is employed PPML estimation method which presented efficient output in the presence of heteroskedasticity and non-large zero values of inward FDI in Panel Gravity Model. However, outward FDI is estimated using the ZINB model for outward FDI data has overdispersion and excess zero flows. The results show that immigrant flows to OECD from Turkey on the FDI flows are relatively more effective than the immigrant flows to Turkey from OECD.