Foreign Direct Investment in Bd

Topics: Investment, Foreign direct investment, Macroeconomics Pages: 25 (6331 words) Published: January 9, 2011
1. Introduction
1.1 Statement of the Problem
Bangladesh is in the process of transition from a predominantly agrarian economy to industrial and service economy. The private sector is playing an increasingly active role in the economic life of the country. The government of Bangladesh has put a comprehensive array of policies aimed at bringing about significant socio-economic improvements to the people of Bangladesh and ultimately, self-reliance, for the nation. In recognition of the private sector's ability to contribute towards achievement of these goals, the government has implemented a number of significant policy reforms to expand industrial base of the economy and encourage both domestic and foreign investment in the sector. So, Bangladesh announced a new Industrial Policy in July 1991 incorporating additional incentives to the investors. The policy revised in 1992 was based on the concept of free market economy. Government has welcome private investment from overseas in all areas of economy with the exception of 5 reserve sectors.

1.2 Objectives of the Study Main objectives
i. The current status of foreign investment in Bangladesh
ii. Existing Problems of foreign investment in Bangladesh iii. To identify the future prospects of the foreign investment in Bangladesh. 1.3 Scope of the study
This research paper evaluates the current foreign investment situation in Bangladesh comparing with some other Asian countries and identifies the problems. Possible remedial measures to reduce the problems is then followed by the prospects of foreign investment in future.

1.4 Research Method
Two sources of data collection (i) Primary Data (ii) Secondary. Due to short period of time in stead of primary data. I have dependent on secondary sources such as books, journals, periodicals, web sites etc. The credit for this term paper data collection also goes to my supervisor Prof. Shaikh Ekramul Kabir, Director, Training & Implementation and other faculties, NAEM.

1.5 Definition of Terms
Prospect: Possibility to happen in near future.

Problems: Disfavourable condition of foreign investment in Bangladesh.

Foreign Investment: To invest money and resource in another country except native country.

Bangladesh: Covering the whole area of Bangladesh

1.6 Review of Literature
The aim of this paper is to analysis Prospect and problems of Foreign Direct Investment (FDI) in Bangladesh. The present and future context to highlight the strategies and measures to be taken to eradicate the problems.

1.7 Limitations
Foreign investment is a very important sector for the development of Bangladesh. We have many sectors for foreign investment in our country. This is why, to crate an environment for investment discussing with other country successfully. Only that the Govt. will have adapt some new rules and steps. From my corner there are some limitations while preparing Term Paper.

i. Limited time
ii. Problems to prepare such a life size issue in a small term paper iii. Available documents were impossible to collect
iv. Shortage of opportunity to visit to the respected field. v. Lack of pre-experience

2.1 Conducive Investment Climate
Doing Business in Bangladesh today is easier than many developing economies. A report entitled "Doing Business in 2006: Creating Jobs" published jointly by the World Bank and EFC ranked Bangladesh in the 65th position in terms of Ease of Doing Business among 155 economies (Table-1)

Table -1: Ease of Doing Business Ranking (Selected)
|Rank |Country | |1 |New Zealand | |20...

Bibliography: BOOKS
Debpriya Bhaftachirje, Experiences with Economic Reform: Review of Bangladesh 's Development 1995, Dhaka : The University Press Limited, 1995
Antoine Basile, Investing in Free Export Processing Zones, Paris Organization for Economic Cooperation and Development, 1986.
L. R. Chowdhury, A Textbook on Foreign Exchange, Second Edition, 2006.
Abu Ahmed, "Capital Markets in Bangladesh: The Required Reform Dimensions", Bank Parikrama, Vol- XVII, 1995.
Khorshed Alam, "Reforms in Finance and Banking in Bangladesh",
bank Parikrama, Vol - XVII, 1995,
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