An Empirical Analysis of Foreign Direct Investment and Economic Growth in Bangladesh
Shahjahan Ali,
Md. Rukunujjaman,
Khandaker Jahangir Alam
Issue:
Volume 4, Issue 1, February 2015
Pages:
1-10
Received:
11 December 2014
Accepted:
18 December 2014
Published:
20 January 2015
Abstract: Foreign Direct Investment (FDI) is assumed to benefit a poor country like Bangladesh, not only by supplementing domestic investment, but also in terms of employment creation, transfer of technology, increased domestic competition and other positive externalities. This paper focuses on the FDI-led growth hypothesis in the case of Bangladesh. The study is based on time series data from 1973 to 2013. The econometric framework of cointegration and error correction mechanism were used to capture two way linkages between variables interest. It is evident in the results that the regression analyses do not provide much support for the view of a robust link between FDI and growth in Bangladesh. It does not imply that FDI is insignificant. Rather, its analysis reduces the confidence in the belief that FDI has exerted an independent growth effect in Bangladesh. But net attitudes of the civil society on the impact of FDI on opportunities for domestic business and economic activities is positive and net attitudes of foreign firms toward FDI reveals that the investment climate has not improved in Bangladesh as a result of lack of good governance, corruption, political instability and disturbance, bureaucratic inertia, and poor low and order situation.
Abstract: Foreign Direct Investment (FDI) is assumed to benefit a poor country like Bangladesh, not only by supplementing domestic investment, but also in terms of employment creation, transfer of technology, increased domestic competition and other positive externalities. This paper focuses on the FDI-led growth hypothesis in the case of Bangladesh. The stu...
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Regional Economic Integration and Exports Performance in the COMESA Region (1980-2012)
Henry Tumwebaze Karamuriro
Issue:
Volume 4, Issue 1, February 2015
Pages:
11-20
Received:
29 January 2015
Accepted:
6 February 2015
Published:
11 February 2015
Abstract: One of the major development challenges facing Africa has been the small and fragmented economies with low incomes and low level of intra-regional exports. In an effort to promote intra-regional exports, Africa has witnessed renewed momentum for regional integration. This study examines the effect of regional economic integration on exports in the COMESA region. It employs the fixed effects regression, random effects regression and instrumental variables GMM regression to estimate an augmented trade gravity model using panel data from 1980 to 2012. The study results show that the formation of COMESA trading bloc has promoted intra-regional exports, implying intra-COMESA export bias. Comparing pre-COMESA (1980-1993) and post-COMESA (1994-2012) periods, it was found that intra-COMESA exports have grown by approximately 35 percent since COMESA was formed. This suggests that in order to enhance export flows in the region, the process of economic integration should be deepened. Thus, there is need for increased investment in transport infrastructure that will reduce long distance cost of doing business. This would have a major impact on deepening integration of COMESA economies.
Abstract: One of the major development challenges facing Africa has been the small and fragmented economies with low incomes and low level of intra-regional exports. In an effort to promote intra-regional exports, Africa has witnessed renewed momentum for regional integration. This study examines the effect of regional economic integration on exports in the ...
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