DO Trade Openness Cause to Accelerate Foreign Direct Investment Inflows? A Case of 10 Developing Nations

This paper analyzes the impact of trade openness on FDI inflows in 10 Developing countries ( Bangladesh, China, India, Indonesia, Iran, Egypt, Nigeria, Malaysia, Pakistan and Turkey). Panel data for the period of 1997-2018 has been used and analyzed through random effect technique, the results shows that trade openness has positive and significant impact on FDI inflows. Market size, economic development and infrastructure also exert positive and significant influence on FDI inflows, while exchange rate has negative but significant effect on FDI inflows.