Economic theory proposes that FDI is one of the primary driving forces for stimulating growth (Barro and Sala-i-Martin, 1995). Researchers still debate whether the interpretation of the direct effect of FDI on economic growth is inconclusive, whereas the significance of the absorptive capacity...

This paper provides evidence on the moderating effects of institutions on the marginal effects of human capital, financial development, and macroeconomic policies on foreign direct investment (FDI) inflows, based on large panel data of 124 developing countries-spanning from 2002 to 2018-and...