IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/21022.html
   My bibliography  Save this paper

Does FDI intensify Economic Growth? Empirics from Bangladesh

Author

Listed:
  • Ahamad, Mazbahul Golam
  • Tanin, Fahian
  • Ahmed, Zahir Uddin

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 attractive destination of FDI, that has a positive spillover and significant impacts affect over time through dynamic effects on economic growth.

Suggested Citation

  • Ahamad, Mazbahul Golam & Tanin, Fahian & Ahmed, Zahir Uddin, 2010. "Does FDI intensify Economic Growth? Empirics from Bangladesh," MPRA Paper 21022, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:21022
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/21022/1/MPRA_paper_21022.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/22915/1/MPRA_paper_22915.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mottaleb, Khondoker Abdul, 2007. "Determinants of Foreign Direct Investment and Its Impact on Economic Growth in Developing Countries," MPRA Paper 9457, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khatun, Fahmida & Ahamad, Mazbahul, 2015. "Foreign direct investment in the energy and power sector in Bangladesh: Implications for economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1369-1377.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miguel Cruz Vásquez & Alfonso Mendoza Velázquez & Beatriz Pico González, 2019. "Foreign direct investment, economic opening and economic growth in Lat," Contaduría y Administración, Accounting and Management, vol. 64(1), pages 15-16, Enero-Mar.
    2. Sanjida Nusrat & Mohona Biswas & Dr. Mohammad Mizanur Rahman Chowdhury & Dr. Zahurul Alam & Dr. Shelina Akhter, 2024. "Factors of Foreign Direct Investment Inflows: A Study on Korean Investment in the EPZs of Bangladesh," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 1928-1941, May.
    3. Dašić Miloš, 2022. "Political Risk and Quality of Governance as Determinants of Foreign Direct Investments in the Transition Countries," Economic Themes, Sciendo, vol. 60(3), pages 343-367, September.
    4. Sundas Rauf & Rashid Mehmood & Aisha Rauf & Shafaqat Mehmood, 2016. "Integrated Model to Measure the Impact of Terrorism and Political Stability on FDI Inflows: Empirical Study of Pakistan," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(4), pages 1-7, April.
    5. Haga Elimam, 2017. "Determinants of Foreign Direct Investment in Saudi Arabia: A Review," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(7), pages 222-227, July.
    6. Muddassar Sarfraz & Shuangqin Liu, 2015. "Influence of Foreign Direct Investment on Gross Domestic Product; an Empirical Study of Pakistan," American Journal of Economics and Business Administration, Science Publications, vol. 7(2), pages 94-100, July.
    7. Dorożyński Tomasz & Kuna-Marszałek Anetta, 2016. "Investments Attractiveness. The Case Of The Visegrad Group Countries," Comparative Economic Research, Sciendo, vol. 19(1), pages 119-140, March.
    8. Mukesh Kumar & Nargis & Azeema Begam, 2020. "Export-Led Growth Hypothesis: Empirical Evidence from Selected South Asian Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(1), pages 1-15, March.
    9. Azam, Muhammad & Khan, Hashim & Hunjra, Ahmed Imran & Ahmad, H. Mushtaq & Chani, Muhammad Irfan, 2011. "Institutions, macroeconomic policy and foreign direct investment: South Asian countries case," MPRA Paper 32480, University Library of Munich, Germany.
    10. Saleh, Emad Alchikh, 2023. "The effects of economic and financial crises on FDI: A literature review," Journal of Business Research, Elsevier, vol. 161(C).
    11. us Saqib Najum & Yaqub Asim & Amin Gomal & Khan Imran & Faridullah & Ajab Huma & Zeb Iftikhar & Ahmad Didar, 2019. "The impact of tourism on local communities and their environment in Gilgit Baltistan, Pakistan: a local community perspective," Environmental & Socio-economic Studies, Sciendo, vol. 7(3), pages 24-37, September.
    12. Pacific K. T. Yapatake, 2017. "The Slow growth of Foreign Direct Investment in Central African Republic," CEREDEC Working Papers 17/001, Centre de Recherche pour le Développement Economique (CEREDEC).
    13. Abdisalan Salad Warsame, 2021. "The Relationship Between Information & Communication Technology and Foreign Direct Investment Inflow to Africa," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(5), pages 1-22, May.
    14. Shakeel Ahmad & Muhammad Tariq & Touseef Hussain & Qasir Abbas & Hamidullah Elham & Iqbal Haider & Xiangmei Li, 2020. "Does Chinese FDI, Climate Change, and CO 2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    15. Verico, Kiki, 2012. "The Impact of Intra Regional Trade Agreement on FDI Inflows in Southeast Asia: Case of Indonesia, Malaysia and Thailand," MPRA Paper 42087, University Library of Munich, Germany, revised 20 Oct 2012.
    16. Bouras, Hela & Sossi Alaoui, Fatima Zorha & Fekih Soussi, Boutaïna & Machrafi, Mustapha, 2014. "Performance des Télécommunications, Qualité institutionnelle et IDE en Afrique du Nord: CAS du MAROC et la TUNISIE [Performance of Telecommunication, Institutionnel Quality and FDI in North Africa ," MPRA Paper 58797, University Library of Munich, Germany.
    17. Calin-Adrian Comes & Elena Bunduchi & Valentina Vasile & Daniel Stefan, 2018. "The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe," Sustainability, MDPI, vol. 10(1), pages 1-16, January.
    18. Miguel Cruz Vásquez & Alfonso Mendoza Velázquez & Beatriz Pico González, 2019. "Inversión extranjera directa, apertura económica y crecimiento económico en América Latina," Contaduría y Administración, Accounting and Management, vol. 64(1), pages 13-14, Enero-Mar.
    19. Maxime Delabarre, 2021. "The Economic and Institutional Determinants of Foreign Direct Investments," SciencePo Working papers Main hal-03334549, HAL.
    20. Maxime Delabarre, 2021. "The Economic and Institutional Determinants of Foreign Direct Investments," Working Papers hal-03334549, HAL.

    More about this item

    Keywords

    FDI; Economic Growth; Bangladesh;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:21022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.