Foreign-direct-investment and its impact on Economic Development of Bangladesh

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Acknowledgement

This research would not have been possible without my supervisor and near dear ones support so I would like thank them all their utmost support.

DECLARATION

I, [type your full first names and surname here], am declaring that matter of this dissertation/thesis is my own unaided work, and that dissertation/thesis has not previously been submitted academic examination towards any qualification. Furthermore, it represents my own ideas and not necessarily those of University.

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ABSTRACT

Third World states like Bangladesh Foreign-direct-investment (FDI) has many benefits at macro level, where interNational investment inflows increase production and economic-development. UDI has foreign capital that states can offer nationwide. Input increase development of number of economic sectors such as, infrastructure industry, manufacturing and also energy. Expansion will increase availability of jobs, fall in unemployment. Therefore, GDP increasing per capita income in developing states, further result in poverty reduction. On other hand, FDI improves relations with developed nations that can offer cost-benefits in form of transfers of modern technology as well as resulting positive externalities. Increased financial partnerships also result in stronger capital markets as well as ideals of corporate governance as well as social responsibility.

From this complex interrelationship between FDI as well as development, trade regime of Bangladesh has been substantial liberalization of investment as well as financing abroad. These reasons also add Bangladesh govt.'s efforts try make states an appealing destination foreign direct investment, which in turn has many benefits. Result is validated by greater incentive educate people workforce in Bangladesh more competitive through increased domestic spending. Rationale of this research is conduct historical as well as statistical analysis of relationship between inflows of international investment as well as sustainable economic-development.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

1.1Background and Context1

1.2Aims and Objectives2

1.3Scope and Importance3

Definition of terms4

1.4Rational5

Research Question5

1.5Overview of Dissertation5

CHAPTER 2: LITERATURE REVIEW7

Foreign Direct Investment7

An Overview and Application of FDI Theory7

Government and the Impact of Investment Policy10

The Advantages of FDI Theory14

Eclectic Paradigm16

Applications of Eclectic Paradigm Concept21

FDI, Bangladesh Govt.'s Investment Policies24

Prevailing Condition of Inflows of FDI in Bangladesh27

Relationship between FDI and Economic-development in Bangladesh30

Theoretical Concepts30

Summary33

CHAPTER 3: RESEARCH METHODOLOGY35

Introduction35

Research Design and Methodology35

Sample35

Data collection method36

Research Philosophies37

Purpose of Research38

Keywords used38

CHAPTER 4: DATA PRESENTATION AND ANALYSIS40

FDI Models Using Equation40

GRANGER CAUSALITY46

Institutional Factors Affecting FDI-Development Relationship48

Prevailing Condition of FDI in Bangladesh55

Sectored distribution of Inflows of FDI57

Impact on Balance of Payments59

CHAPTER 5: RESULTS AND DISCUSSIONS63

Cross reference with theory and practice63

Identify gaps64

Solution65

FDI and economic-development67

Infrastructure expansion and human resources:70

Improvement of seaport services:71

Privatization and other reforms:71

Modernizing Company Law:71

Creation of created parks:72

Creation of novel Export Processing Zones:72

Improving states' photograph abroad:72

Macroeconomic policies:72

Economic and Commercial Diplomacy:73

CHAPTER 6: CONCLUSION AND RECOMMENDATIONS77

6.1Summary77

6.2Evaluation of Results77

6.3Recommendations based on Evaluation78

6.4Future Work78

CHAPTER 7: PERSONAL DEVELOPMENT80

Skills before this project80

Skills after this project81

REFERENCES84

APPENDICES119

QUESTIONNAIRE122

CHAPTER 1: INTRODUCTION

1.1Background and Context

The principle insinuation of the gladly accessible publications with consider to the inflows of foreign direct investment (FDI) has the significances that the nations that are supportive the implementation of the principle assesses that make it likely for befitting guideline as well as institutional natural environment to appear escorted by a high profile of the integration of worldwide ...