Economic development relationship wtth foreign direct investment

Various theories have been put forward to achieve development of underdeveloped and developing countries in the development economy, which has gained importance since the World War II. But when we look at all the theories, there is a consensus on this general issue as to lack of capital. In this study, with 1990-2019 annual data has been investigated the relationship between the development index of 88 countries and foreign investments. According to the results of causality, it is seen that inward foreign direct investments are not a reason for the development levels of the countries for the income group that includes low income and lower middle income levels. But, it is seen as a reason for the development levels of the countries for the income group that includes high income and higher middle income levels. Outward foreign direct investment, which is another variable, is not seen as the reason for the development level of countries for low income and lower middle income group. However, for the high middle income and high income income group, outward foreign direct investment is seen as the cause of development levels. The last variable, Gross Domestic Product (percentage change), is seen as the reason for development levels for both income groups.