DÖVİZ KURU BELİRSİZLİĞİ VE YURTİÇİ YATIRIMLAR: TÜRKİYE EKONOMİSİ ÜZERİNE NEDENSELLİK TESTLERİ (1988-2007)

This study examines the relationship between exchange rate uncertainty and domestic investments. although there is no a clear consensus in the literature, many theoretical studies have indicated negative effects of uncertainties on investments. this study aims to investigate the relationship between exchange rate uncertainty and domestic investment in turkish economy using quarterly data for 1988-2007 period. in this study the relationship between these two variables are analyzed by using the toda- yamamoto causality test. according to the results of toda-yamamoto causality test, there is a unidirectional causality from exchange rate uncertainty towards domestic (both total and private) investments. the empirical findings of this research indicate the exchange rate uncertainty as an important determinant of investment decisions in turkish economy.