Impact of Foreign Capital Inflow on the Economic Growth of Developing Countries

Abstract

This paper analyzes the effect of Foreign Capital Inflow (FCI) on economic growth of a selected developing economy. The
data used in this study were collected from the period of 1984 to 2016. Empirical analysis has been performed by using fixed
effect model and random effect model techniques. The result shows that foreign direct investment and remittances affects
economic growth of the developing countries positively in the  long run as well as short run. On the other hand, the official
development assistance has positive impact on economic growth only in the long run.