Foreign Direct Investment (FDI) and economic development have a two-way relationship. FDI can boost a country's economy by bringing in new technologies and creating jobs. At the same time, a country's economic development can attract more FDI. A study found that FDI helps local firms grow and improves the skills of local workers. In developing countries, FDI has a positive impact on economic growth, especially when combined with high levels of human capital. However, the effect of FDI on economic growth can vary depending on the technology level of local firms.