Foreign Direct Investment And Economic Growth:Empirical Evidence From Asian And Middle East OBOR Countries

The present study reinvestigated the power affecting role of foreign direct investment(FDI)for economic growth in context of Belt and Road countries of Middle East and Asian regions.The paper reviewed the amount of previous literature and found the research gap as regional analysis and about ongoing massive capital inflows of Belt and Road.The prime objective of this study is to offer fruitful implications about allocation of FDI.to gain maximum advantage for growth directly and indirectly.The study offers innovative findings by contributing in a new angle.The study contributed in context of Belt and Road countries of Asia and Middle East region about FDI-growth nexus.For this purpose,the study used the annual data of studied variables for 24 countries,for the period of 1995 to 2016 and employed quantile regression and GMM as main estimation techniques.For robustness of empirical findings and to check income and GDP effect,the study divided the countries as high income,low income,big GDP and small GDP panels.Overall,the findings reported very interesting and surprising results as regional analysis.This study determines that FDI is playing positive role in boosting growth for Asian countries and negative relationship for Middle East region.The results show the sensitivity of FDI for Middle East and high income group of countries,inferring that there might several other factors due to which FDI is adversely affecting growth and these countries need to reform their policies about projects of FDI and institutional quality.The study offers multiple policy implications concerning FDI-growth nexus for Asian,Middle East,high income,low income,big GDP and small GDP countries.