Sources of Financial Development and Their Impact on FDI Inflow: A Panel Data Analysis of Middle-Income Economies

The present research aimed to investigate the long-run and short-run effects of different sources financial development on FDI inflow for middle-income economies during period study, 1980 2020. An annual frequency data was obtained required set variables from WDI IMF. estimations revealed no cross-sectional dependence, a significant cointegration, stationarity at first difference, while explanatory controlled were as mixed level. It validated panel ARDL methods such mean group, pooled dynamic fixed effect testing hypotheses. Hausman test confirmed consistency efficiency method estimations. significance market development, inflation rate, trade openness, real economic growth most critical factors in economies. policymakers should consider these making their policies regarding Future may time series each independent country. findings study are generalized only rather than higher-income lower-income countries.