Factors Affecting Foreign Direct Investment Inflows: A Longitudinal Study on Bangladesh

Jagannath University Journal of Business Studies, 2017

23 Pages Posted: 15 Jun 2020

See all articles by Shilpi Das

Shilpi Das

Jagannath University; Jagannath University

Sumon Das

University of Dhaka - Department of Management

Date Written: 2017

Abstract

Foreign direct investment (FDI) plays a leading role in the economy of Bangladesh through accelerating Gross Domestic Product and overall economic growth. So FDI is vital for a developing country like Bangladesh to take effective measures in attracting the potential foreign investors and enhancing a FDI friendly atmosphere in the country. The focus of this study is on the relevant factors which influenced the FDI inflow in Bangladesh. The study shows how a number of factors influence the FDI inflows in the country. The study used 15 years of panel data from year 2000 to 2014. It found that FDI inflow in Bangladesh has positive correlation with the GDP, Inflation, Infrastructure, Labor cost productivity, Trade openness and Trade performance and negative correlation with tax while political stability has a non-significant negative relationship with FDI inflow.

Keywords: Foreign Direct Investment, Gross Domestic Product, Factors Influencing FDI, FDI in Bangladesh, Worldwide Governance Indicator

Suggested Citation

Das, Shilpi and Das, Shilpi and Das, Sumon, Factors Affecting Foreign Direct Investment Inflows: A Longitudinal Study on Bangladesh (2017). Jagannath University Journal of Business Studies, 2017, Available at SSRN: https://ssrn.com/abstract=3605607 or http://dx.doi.org/10.2139/ssrn.3605607

Shilpi Das

Jagannath University ( email )

9-10 Chittaranjon Avenue
Bangladesh

Jagannath University ( email )

9-10, Chittaranjan Avenue
Sadarghat, Dhaka
Bangladesh

Sumon Das (Contact Author)

University of Dhaka - Department of Management ( email )

Department of Management
University of Dhaka
Bangladesh, 1000
Bangladesh
01711209239 (Phone)

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