THE EFFECTS OF OUTWARD FOREIGN DIRECT INVESTMENT AND INSTITUTIONAL QUALITY ON ECONOMIC GROWTH

This study examines the interactions of outward foreign direct investment with institutional quality as well other macroeconomic determinants to determine whether their joint impact promotes home country economic growth. Econometric techniques such pooled OLS, fixed effect, differenced Generalized Methods Moment, and System Moment (GMM) are utilized for panel dataset 141 countries period 2003-2019. The finds that dynamic interaction investments (FDI) is positive boosts country’s growth development. Furthermore, evidence shows mutual reinforcement FDI exchange rate gives rise suggests when currency appreciates, there may be a higher flow overseas weaker rate, given domestic can buy more investment. enhances through forward backward linkages. These results imply policymakers should consider sound policies integrates institutions enhance