Is the relationship Foreign Investment Inflow and Country specific Variables?

Abstract

The purpose behind this study is to examine the significant association between the FDI (foreign direct investment) with other variables such as BOT (balance of trade) and GDP (Gross domestic product). Used time series annul data set which covers the period from 1995 to 2019. Descriptive statistics, multiple regression models are used to inspect the data set variables accuracy and significance with FDI. Heteroskedasity and Serial correlation test are utilized to inspect the correctness and as well as normality residuals of the series data. Our result shows that BOT are significant negatively at level of 5%, and GDP behave insignificant negative causality with FDI. All of the variables are negative significant and insignificant with FDI. These analyses are encouraging the local and international investors as well as also support the monetary policy makers.