The issue of Foreign Direct Investment (FDI) has been receiving phenomenal attention from
many governments. Bangladesh is not lagging behind from it. Economic development for the
developing countries like Bangladesh is largely dependent on FDI. The major challenges for the host country are to ensure an eye-catching and conducive investment climate to foreign investors
for FDI inflow. In recent years, Bangladesh has been devoting efforts for attracting FDI offering a lot of lucrative incentives and benefits. Though attempts taken to increase FDI inflow, the result achieved is not appreciable enough for Bangladesh. Proponents of Foreign Direct Investment argue that it brings prosperity to the recipient countries through technological transfer, increasing volume of exports, enhancing job opportunities and increasing government revenue. Foreign Direct Investment (FDI) increases the volume of domestic capital to finance new development projects in the country and simultaneously provides access to new technology, managerial and marketing know-how. But the inflows of FDI are not praiseworthy though it has an increasing trend.
DETERMINANTS OF FDI:
Arguments supporting FDI in developing countries suggest that recipient countries need to fulfill some preconditions to create a favorable business environment. It has certain advantages to both the host country and the investor. Host countries’ macroeconomic policy, tax regime, regulatory practices are critical determinants for attracting FDI. The foreign investors are also benefited by penetrating a market, gaining access to raw materials, diversifying business activity, better rationalizing production processes and overcoming some exporting drawbacks, like trade barriers and transport costs. Internal factors of host countries are important determinants for attracting FDI. Host country location related factors that mainly comprise of natural resources, cheap labor, proximity to markets and political,... [continues]
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(2010, 10). Fdi in Bangladesh. StudyMode.com. Retrieved 10, 2010, from http://www.studymode.com/essays/Fdi-In-Bangladesh-443707.html
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"Fdi in Bangladesh." StudyMode.com. 10, 2010. Accessed 10, 2010. http://www.studymode.com/essays/Fdi-In-Bangladesh-443707.html.