Green Global
Foundation   Journal
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EFFECT OF FOREIGN DIRECT INVESTMENT ON GDP, EXPORT AND DOMESTIC INVESTMENT: BANGLADESH PERSPECTIVE (Pages : 53 - 61)

Foreign Direct Investment (FDI) is pre-requisite to move from an agrarian economy to an industrial economy for any developing country. The purpose of this research was to investigate the status of Foreign Direct Investment (FDI), and its impact on Gross Domestic Product (GDP), export and domestic investment in Bangladesh. Total 42 year’s data on FDI, export, GDP, domestic investment were collected from different secondary sources. After necessary testing for time series data, regression analysis was performed to evaluate the impact of FDI on GDP, export and domestic investment. Result shows that FDI inflow was increasing during the last two decades and the major share of FDI inflow in Bangladesh came as equity capital form. Greater portion of FDI inflow came through EPZ areas and which is increasing gradually. On the basis of sector analysis, it shows that, major proportion of FDI is invested on telecommunication sector in the recent years. Result reveals that Malaysia is the highest investor country in Bangladesh. Impact result shows that FDI has positive and significant effects on GDP, export and domestic investment. This research recommends administrative system, corruption, bureaucracy need to be reform for attracting foreign investment in Bangladesh.Download