ARDL Method

There are many factors affecting Foreign Direct Investment inflows into the countries. One of them is Special Economic Zones that encourage Foreign Direct Investment inflows and achieve remarkable results in the world. Special Economic Zones are defined in the United Nations Conference on Trade and Development as the regions where production, trade and storage are not limited to time and are exempt from customs and taxes. This study analyzed the relationship between the Foreign Direct Investment inflows of Turkey, the Foreign Direct Investment inflows of the World and the number of the Special Economic Zone types analyzed using the Autoregressive Distributed Lag Method from 1980 to 2019. The results show that Foreign Direct Investment inflows of the World have a positive and significant effect on Foreign Direct Investment inflows Turkey in the long term and the short term. Also, the number of total Special Economic Zone has a positive and significant on the Foreign Direct Investment inflows of Turkey. Foreign Direct Investment inflows of Turkey increase 1.01% and 2.58% in long term and short term, respectively when the increase is 1% in the number of total Special Economic Zone. Moreover in this study, a number of the Special Economic Zone types such as OIZ, TDZ, FZ have been analyzed .

The Unconventional Gas Production Revolution in the US has ushered in new opportunities for American petrochemical companies, granting abundant access to gas resources and fostering business growth. Consequently, prominent global petrochemical firms have made substantial investments in the United States' petrochemical and chemical industries. Simultaneously, the surge in gas production from unconventional reserves in the US has led to considerable growth in the country's petrochemical output. To address this crucial topic, we conducted a comprehensive time series analysis, investigating the long and short-term relationships between oil and polyethylene prices in the US during the shale gas development phase. Employing an autoregressive distributed lag (ARDL) model for the period spanning from January 2013 to December 2017, our research findings reveal that, in the long run, there exists a positive and significant influence of the oil price variable on polyethylene prices. However, in the short term, no discernible impact on the polyethylene price variable was observed. Interestingly, the analysis also indicates a unidirectional causal relationship, with oil prices influencing polyethylene prices. This finding suggests that despite the divergence between oil and gas prices, oil remains a crucial determinant of petrochemical product pricing. The results underscore the significance of shale gas development and its impact on the petrochemical industry. As the US continues to experience increased gas production, comprehending the intricate relationships between oil, gas, and petrochemical prices becomes imperative for companies' strategic decision-making and policymakers alike.