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This paper analyses the intensity of the influence of foreign direct investments, exports of goods and services, and research and development expenditure on GDP growth of developed and developing countries. Panel regression analysis determined that the exports of goods and services make the largest contribution to growth on middle levels of income. In fact, the contribution the export of goods and services makes to growth on middle levels of income is two times larger than in countries with a high GDP. The most essential impact on countries with a high GDP level was made by research and development expenditure, which is 3.5 times larger than its impact on the developing Balkan countries. The phenomenon of the Middle-Income Trap can be explained by insufficient research and development expenditure. Foreign direct investments are not statistically significant for the GDP growth of observed countries, but they achieve far better results on low development levels. The empirical data, presented in figures, confirms the conclusions of the econometric analysis. [ABSTRACT FROM AUTHOR]

The foreign and domestic investments have a significant contribution towards economic development for developing and developed economies especially for underdeveloped economies. The primary objective of this study is to investigate the causal connection between domestic and foreign private investment along with its impact on economic growth of Pakistan. Moreover, time-series data has been used from 1980 to 2017 and autoregressive distributed lags (ARDL) method is implied for the data analysis perspective. The long-run findings indicate that foreign private investment has a negative and insignificant impact on economic growth, whereas, domestic investment shows a statistical significance but positive impact on Pakistan economy. The short-run dynamic designates that both domestic and foreign private investment is significantly and positively associated with the growth rate. Whereas, error correction term (ECT) is correcting the disequilibrium of data 42.7% on annual basis. Finally, F-test shows that the overall model of this study is statistically significant. [ABSTRACT FROM AUTHOR]