This study uses a threshold regression model and finds new evidence that the positive impact of FDI on growth "kicks in" only after financial market development exceeds a threshold level. Until then, the benefit of FDI is non-existent. © 2009 Elsevier B.V.
Azman-Saini, W. N. W., Law, S. H., & Ahmad, A. H. (2010). FDI and economic growth: New evidence on the role of financial markets. Economics Letters, 107(2), 211–213. https://doi.org/10.1016/j.econlet.2010.01.027