The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh

Sultanuzzaman Md Reza; Hongzhong Fan; Tunviruzzaman Reza; Banban Wang

Article Details

Research Article Volume 12 Issue 2

The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh

Sultanuzzaman Md Reza • Hongzhong Fan • Tunviruzzaman Reza • Banban Wang

Published: 19 Jan 2018 Issue:Volume 12 Issue 2 Jan 2018 Author details below

Sultanuzzaman Md Reza

School of Economics, Huazhong University of Science and Technology

Hongzhong Fan

School of Economics, Huazhong University of Science and Technology

Tunviruzzaman Reza

Department of Business Studies, Northern University

Banban Wang

School of Economics, Huazhong University of Science and Technology

FDI Inflows Economic Growth FDI and GDP growth relationship Vector Error Correction Metrics.

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Abstract

Research summary

The research finds out that there is a causal relationship between Foreign Direct Investment Inflows (FDI) and Gross Domestic Product (GDP) Growth. The study also reveals that the issue of Foreign Direct Investment (FDI) Inflows has become a vital weapon of Gross Domestic Product (GDP) growth for Bangladesh, bringing in technological development, capital investment and knowledge also needed for economic growth. According to this view, this paper purposes to study the relationship between FDI and economic growth in Bangladesh by the co-integration and Vector Error Correction Metrics (VECM) Test. The empirical analysis has conducted by using annual secondary data for the year of 1990-2015 of Bangladesh, to investigate the relationship between FDI Inflows and Economic Growth in Bangladesh. Paper finds out the positive relationship running from FDI Inflows to GDP in the long-run and short-run. The study suggests that Bangladesh government can create foreign investment-friendly policies, transfer of knowledge and trade promotion as well. This paper also advocates that the country's capacity to improve on economic growth will subject to promote more FDI Inflows.

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Article History

Published 19 Jan 2018

How to Cite

Reza, S. M., Fan, H., Reza, T., & Wang, B.. (2018). The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh. Journal of Business and Retail Management Research, Volume 12 Issue 2.

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Archive cited by No internal citing article yet

Reference depth 35 sources listed

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APA

Reza, S. M., Fan, H., Reza, T., & Wang, B.. (2018). The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh. Journal of Business and Retail Management Research, Volume 12 Issue 2.

MLA

Reza, Sultanuzzaman Md, et al.. "The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh." Journal of Business and Retail Management Research, Volume 12 Issue 2, 2018.

Chicago

Sultanuzzaman Md Reza, Hongzhong Fan, Tunviruzzaman Reza, and Banban Wang. "The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh." Journal of Business and Retail Management Research Volume 12 Issue 2 (19 Jan 2018).

Harvard

Reza, S. M., Fan, H., Reza, T., & Wang, B. (2018) The impact of foreign direct investment inflows on economic growth: evidence from Bangladesh. Journal of Business and Retail Management Research, Volume 12 Issue 2

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