Foreign Direct Investment (Fdi) in Bangladesh

5944 Words24 Pages
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Abstract

The issue of Foreign Direct Investment (FDI) has been receiving phenomenal attention from many governments. Bangladesh is not lagging behind from it. Economic development for the developing countries like Bangladesh is largely dependent on FDI. The major challenges for the host country are to ensure an eye-catching and conducive investment climate to foreign investors for FDI inflow. In recent years, Bangladesh has been devoting efforts for attracting FDI offering a lot of lucrative incentives and benefits. Though attempts taken to increase FDI inflow, the result achieved is not
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In this context the aim of this paper was to find out the determinants, impediments, favorable environment and potential of FDI for Bangladesh. Less developed infrastructure of Bangladesh is vital problem for FDI inflows. The trend of foreign investors goes in infrastructural investment such as electricity, fuel, air and sea communication.

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Literature Review

2.1 Methodology
This paper is fully based on secondary information. Content Analysis Method, which is commonly known as the review of the previous literature, has been followed in the preparation of this article. Apart from that secondary information have been collected from the statistics Department of Bangladesh Bank, Investment Handbook of Bangladesh Board of Investment, Bangladesh Economic Review 2006 and Bangladesh Bank’s Annual Report 2006. Some information has also been collected from the daily newspapers and Internet sources. Used data has been presented through tabular and graphical analysis.

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Main Body

3.0 Determinent of Foreign Direct Investment
Arguments supporting FDI in developing countries suggest that recipient countries need to fulfill some preconditions to create a favorable business environment. It has certain advantages to both the host country and the investor. Host countries’ macroeconomic policy, tax regime, regulatory practices are critical determinants for attracting FDI.
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