Foreign capital inflow and economic growth in Bangladesh
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Foreign capital inflow and economic growth in Bangladesh

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Published by University of Dhaka in Dhaka, Bangladesh .
Written in English



  • Bangladesh,
  • Bangladesh.


  • Capital -- Bangladesh.,
  • Investments, Foreign -- Bangladesh.,
  • Bangladesh -- Economic development.,
  • Bangladesh -- Economic policy.

Book details:

Edition Notes

Includes bibliographical references (p. 406-428).

StatementShamsuddin Ahmad.
ContributionsUniversity of Dhaka.
LC ClassificationsHC440.8.Z9 C3 1992
The Physical Object
Pagination[24], 428 p. ;
Number of Pages428
ID Numbers
Open LibraryOL1375614M
LC Control Number92907456

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Impact of Foreign Direct Investment on Bangladesh’s Balance of Payments: Some Policy Implications. Muhammad Amir Hossain1 Abstract. Foreign direct investment (FDI) is a potent weapon of economic development, especially in the current global context. FCI may also distort (substitute) the domestic savings. Hence, a surge in inflows of the foreign capital seen in recent years may create problems for economic policy, especially in the present environment of globalization and free capital mobility. stimulated economic growth, self-employment and poverty reduction. The policy implication of these results is that Ethiopia requires foreign capital inflow into the economy to sustain the current economic growth, self-employment and poverty reduction. Keywords: DAC, Economic growth, Ethiopia, FDI, Poverty reduction, Self-employment EKHM 2. EMPIRICAL STUDIES ON FOREIGN CAPITAL Foreign Capital and Economic Growth Most of the earlier studies examined the direct impact of capital inflows or aid on developing countries’ growth in the context of a neoclassical framework, with growth in capital and labor inputs explaining Size: KB.

industrial policy enabling the inflow of foreign direct investment has made a significant impact on the economic growth of Bangladesh over a period of 15 years, from to 3. Purpose of the Study The objective of this study is to assess the effect of FDI on the economic growth of Bangladesh. In this chapter, therefore, we attempt to specify and estimate a simultaneous equations model in which both savings and growth are treated as jointly dependent variables. In addition to simultaneity, another important feature of this model is that it allows for the interaction of the socio-economic Author: Kanhaya L. Gupta, M. Anisul Islam. Surprisingly, we find that there is a positive correlation between current account balances and growth among nonindustrial countries, implying that a reduced reliance on foreign capital is associated with higher growth. Foreign Aid, Foreign Direct Investment and Remittances remain important and stable source of foreign capital inflows to developing countries, as they bring in large amounts of foreign currency that help sustain the balance of payments.

the contributions of FDI to economic growth, based on theoretical and analytical findings. Some see FDI as a very important tool for economic growth especially in the less developed countries (LDCs) but some scholars claimed that the con-tribution of FDI to economic development is not as pronounced as most people believe. Remittances received by the incorporated or unincorporated direct investment enterprises operating in Bangladesh on account of equity participation in those by the nonresident direct investors. Equity capital comprises: a) Ordinary Shares: This item represents the total paid-up capital File Size: 2MB. Foreign direct investment (FDI) is an important source of finance which may facilitate the transfer of the modern technology, knowledge, skills, and innovations of economically advanced countries to developing countries, thus helping them to accelerate the speed of their economic growth and development, by: 2. Bangladesh thus provides a test case for examining the effectiveness of foreign capital in promoting economic growth. Focussing on the supply side of the economy, an econometric model is developed.