Abstract
The aim of the research the impact of monetary policy shocks on foreign direct investment in Turkey for the period 1990-2020, issued data by the Centre Bank of Turkey and the World Bank, the model used SVAR, IRF, and DSV to estimate, as turkey it suffers from instability in exchange rates due its reliance on monetary policy aimed at controlling the money supply, so the hypothesis was formulated, the shocks resulting from monetary policy affect foreign direct investment, its was show through the results of the research, that a negative structural shocks in the real domestic interest rate and inflation rate led to an increase in foreign direct investment in the short term only, while a negative exchange rate shock led to a decline in foreign direct investment, while a positive structural shocks in the broad money supply led to the decline of foreign direct investment came contrary to the hypothesis. It was also found through the structural variance segmentation test that most shocks of the Monterey policy variables in explaining the variance in Turkey’s foreign direct investment is the long-term money supply.
