Do financial inclusion and financial efficiency play deterministic role for FDI in Road and Belt countries

The study's motivation is to evaluate the impacts of financial inclusion and financial efficiency on foreign Cash flows in the Road and Belts countries for the period spanning 1971-2019. The study applies several econometrical techniques, but the magnitudes of financial inclusion and financial efficiency on foreign cash flows have been detected by performing Autoregressive Distributed Lagged in panel form and Cross-sectional ARDL and directional causality assess by performing non-granger causality test. The panel root test ascertains variables are stationary in mixed order but not after the 2nd difference; cross-sectional dependency test established that units possess some common dynamic among them. The long-run association reveals the results of panel cointegration tests. The results of ARDL and CS-ARDL confirm a positive statistically significant influence running from financial inclusion to foreign cash flows in the form of remittances and FDI. However, the magnitudes of financial inclusion and financial efficiency on foreign cash flows are prominent in the long-run. The directional causality test ascertains the feedback hypothesis explaining the causal effects between financial inclusion and financial efficiency and remittance and financial inclusion and FDI.