Preview

Report

Powerful Essays
Open Document
Open Document
7315 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Report
An empirical study of the status of Foreign Direct Investment (FDI) & impact of FDI in major economic sectors of Bangladesh

Table of Contents

Abstract:

This report is about the Foreign Direct Invest (FDI) in Bangladesh. FDI is one of the most potential and significant driving force of the economical progress not only for Bangladesh but also for all the nations. Foreign direct inflows play a significant role in the economic progress of our country improving GDP, creating employment opportunities, enhancing technological advancement, flourishing export and import and so on. The government has also implemented various lucrative and incentive policies to allure the foreign investors to invest in our country. Although, political crisis, some policies and regulations and economic instability is hampering FDI significantly, therefore, it is one of the most flourishing and potential source to progress.

Chapter 1

1.1: Background of the study
Foreign Direct Investment (FDI) is considered as one of the vital ingredients for overall development process of a developing country like Bangladesh. Industrial development is an important pre-requisite for economic growth of a developing country. Bangladesh is basically a country of agrarian economy. For her economic development, industrial economy is imperative. So Bangladesh is gradually moving from agrarian economy to industrial economy. In the age of globalization, it has become a burning issue to exchange views, ideas, capital and human resources. Government of Bangladesh is trying to create a favorable investment environment through introducing economic policies, incentives for investors, promoting privatization and so on. Therefore, the contribution of FDI is necessary in the enhancement of a country’s economic growth.
Researchers have marked FDI as an important factor in accelerating economic success and wealth of a country as well



Bibliography: Anon., 2011. The Financial Express. [Online]. Bank, B., 2010. Investment survye report. [Online]. Bank, B., 2010. survey report. [Online]. Haque, A., 2012. the present status of the FDI. [Online]. Investment, B.o., 2000. [Online]. Investment, B.B.o., 2012. Mottaleb, 2007. Present GDP status. [Online]. Ripa, j.f., 2013. The Daily Sun. [Online] Available at: http://www.daily-sun.com/details_yes_14-01-2013_The-state-of-Foreign-Direct-Investment-in-Bangladesh_379_2_17_1_1.html. smahmud, 2013. educarnival Pedia. [Online] Available at: http://edupedia.educarnival.com/fdi-and-its-impact-in-bangladesh/.

You May Also Find These Documents Helpful

  • Powerful Essays

    The integration of the global economy has strengthened the international integration of goods, technology, labour and capital. This process of cross-border restrictions eliminations on international capital flows has increased the growth of foreign direct investment (FDI) activity. Many countries make every effort to attract FDI because it will bring a substantial growth to their economy, in addition to its function as the principal vehicle of international capital movement.…

    • 3528 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    FDI tends to increase in the current decade. According to the recent data the amount of FDI in different countries is considerable. Firms throughout the world are interested in FDI…

    • 9956 Words
    • 40 Pages
    Powerful Essays
  • Best Essays

    Fdi in North America

    • 1790 Words
    • 8 Pages

    Foreign Direct Investment (FDI) is an investment involving a long-term relationship and reflecting a lasting interest in and control by a resident entity in one economy of an enterprise resident in a different economy (UNCTAD). There are two types of FDI, inflows and outflows, which can be used to help determine the investment strategies and economies of countries engaged in FDI. North America has been the source of nearly one-half of all investment and almost three-quarters of the jobs created throughout the globe (Huggins, 442). North America is probably the most important continent when it comes to dealing with FDI. The three main countries of North America, the United States, Canada, and Mexico, all rank in the top 15 of world economies, proving them to be desirable partners in FDI transactions. The trends of FDI discussed in this report will be unparalleled to this information and can lead to some predictions on how future trends of the countries of North America will continue to be superior to that of the other continents of the world.…

    • 1790 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Foreign direct investment (FDI) plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing…

    • 2041 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Fdi in the United States

    • 1275 Words
    • 6 Pages

    The United States is the largest destination of foreign direct investment (FDI). This article analyse the reason why the United States is so attractive to foreign investors. The analysis can be divided into two parts. In the first part, the author discusses the open economy of the United States in the global environment. The political and economic environment enables the United States to absorb large amount of FDI. The second part focuses on domestic level. The United States is the third largest country in both size and population. It also has rich natural resources, and occupies 27% of the world’s coal reservation. The huge domestic market enables the United States to attract and digest FDI. Another important factor of FDI flows is the financial markets of the United States. At the end of the article, the author discusses the challenges the United States faced especially after the Global Financial Crisis (GFC).…

    • 1275 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    The economy has improved dramatically in the 1990’s, however Bangladesh still suffers from major growth deficiencies in several areas such as foreign trade in the South Asian region. Efforts to fulfill Bangladesh’s macroeconomic targets have been complicated mainly due to various factors including the country’s large population (Bangladesh is the most densely populated country in the world), and corruption within the government to name just a few. Other major obstacles for Bangladesh to overcome in order to achieve growth include the inefficiency of state owned enterprises, inadequate power supplies and slow implementation of economic reforms. Even though Bangladesh has made some progress improving the conditions for foreign investors and liberalizing the capital markets, foreign investors in a range of sectors are still increasingly frustrated with the politics of confrontation, the level of corruption, slow rate of reform and privatization and deregulation of the public…

    • 1878 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Globalization & Bangladesh

    • 5227 Words
    • 21 Pages

    Chapter 3, this chapter illustrates the findings and analysis of this study. Here it will describe about Bangladesh and impacts and challenges of globalization in Bangladesh. And will analyze the findings. Although Bangladesh still does not rank among the most globally integrated developing economies, the speed of integration has been quite rapid. Foreign and export oriented industries are changing the economic and social scenario of Bangladesh which, results in an…

    • 5227 Words
    • 21 Pages
    Powerful Essays
  • Satisfactory Essays

    Bangladesh Is a developing country of Asia. There are many multinational companies doing business based on peoples’ choice and demand in Bangladesh.…

    • 1439 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Foreign Direct Investment is viewed as a major stimulus for economic growth for developing countries like Bangladesh which lacks sufficient domestic financing. This paper is intended to empirically analyze this theoretical perspective and analyze the impact of FDI on Bangladesh’s economic growth and income inequality. Using time series data of FDI, GDP and other relevant variables, it was found that FDI inflow into Bangladesh did not show any direct significant impact on economic growth; however, it had a negative impact on income inequality, though this impact was found to be small.…

    • 11041 Words
    • 45 Pages
    Powerful Essays
  • Better Essays

    Table 4: FDI Stock classified by Major Countries and Major Sectors as on December, 2009…

    • 4317 Words
    • 18 Pages
    Better Essays
  • Good Essays

    dimensions – defined as increasing integration of a national economy with the world economy through exchange of goods and services, capital flows, technology, information, and labour migration. Not all of these exchanges, however, figure equally prominently in the case of Bangladesh. The least advance has been made in respect of capital flow. By the year 2000, foreign direct investment (FDI) amounted to just 0.4 per cent of gross domestic product (GDP), which was low even by the standards of low-income countries (average 0.9 per cent). But significant advances have been made in some of the other spheres – especially, exchange of commodities and labour. Aided by trade liberalization and export incentives of various kinds, the economy has become much more open in the last decade or so. During the 1980s, the shares of both imports and exports in GDP had remained virtually stagnant. By contrast, between 1989-90 and 1999-2000, the share of imports in GDP went up from 13.5 per cent to 20.0 per cent, and the share of exports went up from 5.7 per cent to nearly 13.4 per cent. The flow of labour migration and the concomitant inflow of migrants' remittances have also gathered pace. The foreign exchange earnings from remittances now amount to nearly three-fourths of net export earnings. This paper will…

    • 474 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Fdi in Bangladesh

    • 3767 Words
    • 16 Pages

    significantly reduced. Most countries offer incentives to attract FDI, such as tax concessions, tax holidays, accelerated depreciation on plants and machinery, export subsidies, import entitlements, etc. Many theoretical and empirical studies have attempted to account for the reasons of FDI movement across the globe. As a developing country, Bangladesh needs FDI for its ongoing development process.…

    • 3767 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    FDI in Bangladesh

    • 4437 Words
    • 17 Pages

    Bangladesh has no other options but to attain economic development. Foreign Direct Investment (FDI) is recognized as a key component for economic growth for Bangladesh. Being one of the Least Developed Countries (LDC) with insufficient domestic savings rate for investment after fulfilling its basic needs, the importance of foreign investment is unquestionable. Foreign Direct Investment (FDI) will create employment, increase efficiency of labour, encourage technology transfer and develop new exportable sector. To attract more and more FDI the government of Bangladesh has been trying to establish private investment friendly environment. A number of opportunities have been given by the Government of Bangladesh to attract foreign investors to invest in the country in some prospective sectors. As Bangladesh does not have sufficient domestic savings for investment, foreign investment is the most powerful ingredient for its economic development. Definition of FDI Foreign Direct investment (FDI) is investment made to acquire a lasting interest in or effective control over an enterprise operating outside of the economy of the investor. FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy, including reinvested earnings and intra-company loans, net of repatriation of capital and repayment of loans. FDI net outflows are the value of outward direct investment made by the residents of the reporting economy to external economies, including reinvested earnings and intra-company loans, net of receipts from the repatriation of capital and repayment of loans. Prospects of FDI Bangladesh has been promoting FDI for decades with the most liberal investment policy and incentive regime in South Asia. The Foreign Private Investment (Promotion and Protection) Act, 1980, ensures equal treatment for local and foreign Investors. This act also provides legal protection to foreign investment in Bangladesh against nationalization and…

    • 4437 Words
    • 17 Pages
    Powerful Essays
  • Satisfactory Essays

    Foreign Direct Investment (FDI) has played a key role in the modernization of the Bangladesh economy for the last 15 years.…

    • 366 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Foreign Direct Investment

    • 4225 Words
    • 17 Pages

    Impact of Foreign Direct Investment and Trade on Economic Growth Shiva S. Makki The World Bank Agapi Somwaru Economic Research Service, USDA…

    • 4225 Words
    • 17 Pages
    Powerful Essays