Nexus between inbound FDI, outbound FDI, institutions and domestic investment: Evidence from lower income countries

Nexus between inbound FDI, outbound FDI, institutions and domestic investment: Evidence from lower income countries | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Nexus between inbound FDI, outbound FDI, institutions and domestic investment: Evidence from lower income countries Muhammad Ali Husnain, Ping Guo, Waqar Ameer, Muhammad Kamran Bhatti, and 1 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5265461/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This empirical study investigates the impact of IFDI, OFDI and IQ in promoting DCF in least developing countries. The results suggest that interactive variable (IFDIˣIQ) of IFDI and IQ significantly promote DCF in long run. Quite the reverse, interactive variable (OFDIˣIQ) of OFDI and IQ quite negligibly impact DCF in long run. This shows that compared to OFDI, IFDI can quickly reform the developing regions. Furthermore, interactive variable (OFDIˣIFDIˣIQ) of IFDI, OFDI and IQ neutrally contribute to DCF in long-run. It again reconfirms that OFDI neither play interesting role nor it is effective policy tool to promote DCF in long run for lower income countries. JEL Classification: C23; F20; F21; F23 Business and commerce/Business and management Business and commerce/Economics Social science/Development studies Social science/Economics Social science/Finance IFDI OFDI Institutions Domestic Investment Panel Data Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-5265461","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Article","associatedPublications":[],"authors":[{"id":372052034,"identity":"00d8b7cd-9e35-45be-b691-ef56260c1d77","order_by":0,"name":"Muhammad Ali Husnain","email":"","orcid":"","institution":"Hunan University","correspondingAuthor":false,"prefix":"","firstName":"Muhammad","middleName":"Ali","lastName":"Husnain","suffix":""},{"id":372052035,"identity":"e8e5a692-5cc3-43a9-be0a-b7e920b31340","order_by":1,"name":"Ping Guo","email":"","orcid":"","institution":"Hunan University","correspondingAuthor":false,"prefix":"","firstName":"Ping","middleName":"","lastName":"Guo","suffix":""},{"id":372052036,"identity":"6d2682d0-1a1a-4fa6-8313-acfa5c10d2da","order_by":2,"name":"Waqar Ameer","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA4UlEQVRIiWNgGAWjYJADxgcMDAdI08JsQLIWNgmitBgcP7zxcwWDXTQ/e++zap6aO3L8DMwPH93Ap+VMWrHkGYbk3Jk9x81u8xx7ZizZwGZsnINHi9mBHAPJBgbm3A030thu87AdTtxwgIdNGq+W82+MfzYw1Ofuv/+MrZjnHzFabuSYAW05nLtBgo2NmbeNCC32N56VWTYYHM+dcSaNWXJu32FjyWYCfpHsT958s6GiOre//RjjhzffDsvxszc/fIxPCxAYgBEIMPGASGb8yqFaoIDxB2HVo2AUjIJRMAIBANgQTOMpD4/eAAAAAElFTkSuQmCC","orcid":"","institution":"Shandong Technology and Business University","correspondingAuthor":true,"prefix":"","firstName":"Waqar","middleName":"","lastName":"Ameer","suffix":""},{"id":372052037,"identity":"3fc84b7d-2972-4d21-8de3-47ed362a93cd","order_by":3,"name":"Muhammad Kamran Bhatti","email":"","orcid":"","institution":"Hunan University","correspondingAuthor":false,"prefix":"","firstName":"Muhammad","middleName":"Kamran","lastName":"Bhatti","suffix":""},{"id":372052038,"identity":"3286fdd9-7153-4d2e-90cc-c197d3ff6102","order_by":4,"name":"Qilin Zhan","email":"","orcid":"","institution":"Liaoning University","correspondingAuthor":false,"prefix":"","firstName":"Qilin","middleName":"","lastName":"Zhan","suffix":""}],"badges":[],"createdAt":"2024-10-15 05:47:56","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-5265461/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-5265461/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":71228365,"identity":"be81090c-01e5-402c-a86a-b0913e709f73","added_by":"auto","created_at":"2024-12-12 10:23:48","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":369148,"visible":true,"origin":"","legend":"","description":"","filename":"LDCMANUSCRIPT.pdf","url":"https://assets-eu.researchsquare.com/files/rs-5265461/v1_covered_c1af3542-6fcd-4a72-97a4-767bc4e413dd.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Nexus between inbound FDI, outbound FDI, institutions and domestic investment: Evidence from lower income countries","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"IFDI, OFDI, Institutions, Domestic Investment, Panel Data","lastPublishedDoi":"10.21203/rs.3.rs-5265461/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-5265461/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis empirical study investigates the impact of IFDI, OFDI and IQ in promoting DCF in least developing countries. The results suggest that interactive variable (IFDIˣIQ) of IFDI and IQ significantly promote DCF in long run. Quite the reverse, interactive variable (OFDIˣIQ) of OFDI and IQ quite negligibly impact DCF in long run. This shows that compared to OFDI, IFDI can quickly reform the developing regions. Furthermore, interactive variable (OFDIˣIFDIˣIQ) of IFDI, OFDI and IQ neutrally contribute to DCF in long-run. It again reconfirms that OFDI neither play interesting role nor it is effective policy tool to promote DCF in long run for lower income countries.\u003c/p\u003e\n\u003cp\u003e\u003cem\u003e\u003cstrong\u003eJEL Classification:\u003c/strong\u003e\u003c/em\u003e\u003cstrong\u003e \u003c/strong\u003eC23; F20; F21; F23\u003c/p\u003e","manuscriptTitle":"Nexus between inbound FDI, outbound FDI, institutions and domestic investment: Evidence from lower income countries","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2024-11-07 04:36:31","doi":"10.21203/rs.3.rs-5265461/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"491d6c52-16ce-4818-af22-8d1ed0e9506d","owner":[],"postedDate":"November 7th, 2024","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[{"id":39595094,"name":"Business and commerce/Business and management"},{"id":39595095,"name":"Business and commerce/Economics"},{"id":39595096,"name":"Social science/Development studies"},{"id":39595097,"name":"Social science/Economics"},{"id":39595098,"name":"Social science/Finance"}],"tags":[],"updatedAt":"2024-12-12T10:23:14+00:00","versionOfRecord":[],"versionCreatedAt":"2024-11-07 04:36:31","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-5265461","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-5265461","identity":"rs-5265461","version":["v1"]},"buildId":"qtupq5eGEP_6zYnWcrvyt","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}