“…His work further states that FDI in the primary sector, however, tend to have a negative effect on growth, while investment in manufacturing a positive one. Several prior studies also explain the significance of FDI and trade in the process of economic development and even affirm positive linkages, for example see (Moran et al, 2005;Kobrin 2005; Le & Ataullah, 2006;Dawson, 2012;Azam et al 2013;Azam & Ibrahim, 2014;Haseeb et al 2014;Mohammad & Gavrila, 2015;Azam, 2015). Studies conducted by Hermes and Lensink (2003) and Durham (2004) all find that countries with better financial systems and financial market regulations can exploit FDI more efficiently and achieve a higher growth rate.…”