THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, NATURAL CAPITAL, AND FOREIGN DIRECT INVESTMENT: EVIDENCE FROM MINT COUNTRIES

Abstract

This study examines the relationships between natural capital, foreign direct investments, and economic growth in the context of “MINT countries (Mexico, Indonesia, Nigeria, Turkey)” for the period 1974-2021. In the study, “Dumitrescu-Hurlin panel causality test” was applied to analyze the causality relationship between the variables. The findings reveal that there is a bidirectional causality relationship between economic growth and foreign direct investments. Similarly, a bidirectional causality relationship was found between foreign direct investments and natural capital variables. However, it was concluded that there is no causality relationship between economic growth and natural capital. These results present new discussions on the role of natural capital on economic growth in MINT countries and make important contributions to the literature.