Foreign direct investment, trade, and economic growth: An empirical analysis of Bangladesh

Artikel

The study reveals that there is a relationship between foreign direct investments, trade, and growth rate of per capita GDP for Bangladesh with the help of annual time series data for 1973 to 2014. The Vector Error Correction Model (VECM) analysis shows that there is a long-term relationship between these variables. To check the validity of the VECM model, we did a few post-estimation diagnostic tests, and found that the residuals of the regressions have a normal distribution and do not show any auto-correlation. The trade and foreign investment variables have a significant impact on the growth rate of GDP per capita. Because FDI and trade are two important components of economic growth in Bangladesh, it is important to frame policies that promote growth and reduce the barriers for capital flows.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economies ; ISSN: 2227-7099 ; Volume: 4 ; Year: 2016 ; Issue: 2 ; Pages: 1-14 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; International Investment; Long-term Capital Movements ; Economic Growth of Open Economies ; Macroeconomic Analyses of Economic Development ; Economic Growth and Aggregate Productivity: General ; Economywide Country Studies: Asia including Middle East
• Subject: foreign direct investments ; economic growth ; Bangladesh ; trade

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hussain, Mohammed Ershad ; Haque, Mahfuzul
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2016

Further information

• DOI: doi:10.3390/economies4020007
• Handle: http://hdl.handle.net/10419/167739
• Last update: 10.03.2025, 11:42 AM CET