Foreign direct investments are expected to affect economic growth positively. Foreign direct investments may contribute to the increase and the development of human capital by compansating for the lack of savings; improve marketing skills and management systems through stimulating technical knowledge; increase productivity and efficiency in production through developing new production techniques by technology transfers, and entering into new markets; provide incentives to export by directing production excesses to exporting; and affect economic growth positively through increasing the quality of the labor force owing to the accumulation of knowledge.This study aims to test the relation between foreign direct investments and economic growth in developing countries. To test this relation, new generation panel econometric analysis methods, cointegration and causality tests, are applied on selected 20 developing countries out of upper-middle income countries for the period of 1985-2017. In conclusion, in these countries, foreign direct investments did not contribute to the economic growth.