Abstract
The aim of this study is to get the rational answer about the relationship of foreign remittances with FDI inflows. In this research, we utilized panel data consists of a sample of 31 economies for the period of 1991-2015 by concentrating on the region of the low-income level. We applied popular methods to check the interaction of remittances with FDI which are known as panel co-integration analysis along with granger's causality test. Our outcomes indicate that remittance has long run significant and positive relationship with foreign direct investment and causality test revealed their side by side effect on each other. Empirical outcomes also indicate the noteworthy controlling effect of other variables in our model. Our study will certainly guide the financial institutes, policy analysts, financial analysts, researchers and organization of migration at the international level to take decisions linked to channelizing remittances efficiently.