This paper examines empirically the association between Foreign Direct Investment (FDI) inward and FDI outward. Using a panel data set for 35 economies over the period 1981-2004 as well as the methodology of panel cointegration and panel causality tests, the empirical findings show that FDI inward does exhibit a significant relationship with FDI outward. This evidence is supportive to the indirect link of the development path theory.