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Title:Determinants of, and the relationship between FDI and economic growth in Bangladesh PDF Logo
Authors:Ahamed, Mazbahul Golam
Tanin, Fahian
Issue Date:2010
Series/Report no.:Bonn econ discussion papers 2010,1
Abstract:Inward FDI to the middle-income countries has the evidence as a major stimulus to the economic growth; conventionally at export-oriented manufacturing sector. In point of fact, basic macro fundamentals like as growth of gross domestic capital formation, foreign reserve, infrastructure etc. accelerates the FDI inflows. This study reviews the long-run trend on the time scale of FDI to Bangladesh over the period 1975- 2006 and major factors determining foreign companies' decisions to invest, in associated with economic growth. Contents of the paper describe the theoretical development and extensive literature review to find out the appropriate variables to deter the foreign direct investment from time series data. On the basis of intricate link between foreign direct investment and growth, all explained determinants enhance the facilitation, turnover, and return in FDI concentrated sectors that promote long-term sustainable growth with specific shortcomings, directly or indirectly, in our labor-intensive economic activity. Reduced government's ineffectiveness along with supporting policy framework makes Bangladesh as an attractivedestination of FDI, that has a positive spillover and significant impacts affect over time through dynamic effects on economic growth.
Subjects:FDI
Determinants
Economic Growth
Bangladesh
Document Type:Working Paper
Appears in Collections:Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn

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