The last two decades have seen a growing trend towards foreign direct investment (FDI), particularly in developing countries, where FDI is seen as an important component of their economic development strategy. Aside from being an essential factor in economic growth in emerging and developed countries. Hence, this study examined the relationship between (FDI) and economic growth in a sample of 60 countries- according to different income levels- using panel data for the period 2000-2019. The study concluded that (FDI) has a positive impact on economic growth. Interestingly, there were also differences in impact ratio, according to income levels; (FDI) in the lowest-income countries has a greater impact on economic growth compared to the high countries; increasing FDI by 1% boosts economic growth by 0.13%, 0.17%, and 0.03% in middle-income countries (lower segment), middle-income countries (upper segment), and high-income countries, respectively. In contrast to earlier findings, however, the results of this investigation show that (FDI) is statistically significant in explaining variation in the growth rates of the economies of the observed countries.