Factors Affecting Foreign Direct Investment Inflows: A Longitudinal Study on Bangladesh
Jagannath University Journal of Business Studies, 2017
23 Pages Posted: 15 Jun 2020
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
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