Today, the major reason for external debt is to finance high public deficits. This study aims to examine the relationship between external indebtedness and growth variables. In this context, Markov-switching model is used because it allows the examination of unobservable variables in an...

This paper considers movements of Foreign Direct Investments (FDI) in Turkey, and therefore, to understand the dynamics of FDI, runs several nonlinear FDI equations in which the basic determinants of FDI in Turkey are determined through Markov Regime-Switching Models (MSMs). The statistical...