The Moderating Role of Financial Development on the Relationship between Financial Inclusion & FDI: Case of Lower- Middle Income Group of Countries

Abstract

This study aims to examine the relationship between FDI &financial inclusion (FI)without any moderators, and examines if a moderator like FD, which has an effect on both FI & FDI can affect the relationship between FDI & FI. The study uses panel data analysis with the available data of 2010-2020-time span for 48 countries classified under the class of lower middle-income group. And it is found that FDI has a significant positive effect on FI directly without any moderator. Additionally, FI has a significant impact on FDI in existence of the moderator FD.