Türkiye: Terrorist Incidents and Foreign Direct Investment

This study aims to evaluate whether there is a correlation and unidirectional or bidi rectional causality between terrorist incidents and foreign direct investment in Türkiye. Toda Yamamoto elucidates that there is no long-term relationship. RLS, on the other hand, reveals that there is a short-term relationship, and that produces a more fascinating result. While foreign direct investment does not increase terrorist incidents, terrorist incidents possess a positive effect on for eign direct investment. In this case, terrorist actions increase foreign direct investment to Türkiye in the short term. It also appears that terrorist incidents concentrated in big cities do not possess a deterrent effect on foreign direct investments concentrated in big cities. Keywords: Terrorist incidents, foreign direct investment, RLS, Toda Yamamoto causality, Türkiye.