Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries

SM Shoayeb Noman

doi:doi:10.11648/j.eco.20231201.12

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Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries

SM Shoayeb Noman

Published in Economics (Volume 12, Issue 1)

Received: 7 February 2023 Accepted: 7 March 2023 Published: 16 March 2023

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Abstract

Due to globalization, there has been a significant amount of growth in foreign direct investment, exports, imports and remittances which exaggerate the interaction between states, regions and firms. It became obvious for the developing countries like Sri Lanka, Pakistan, India and Bangladesh to take the advantage and stimulate their economic growth through trade and investment. Literature shows that the relationship among these macroeconomic variables is ambiguous as some of the macroeconomic variables have positive impact on growth and others have negative impact, and vice-versa. Keeping this in mind, this paper examines what influence that foreign direct investment, export, gross capital formation, labor force participation and remittances have on economic growth based on a time series data to realize the meticulous scenario. Both descriptive and inferential statistics were implied here where RGDP was response variable and the rest five were explanatory variables. Ordinary Least Square method of multiple linear regression and correlation were carried out and the results disclose that gross capital formation and remittance have significant positive influence, export has significant negative impact on RGDP for most of the countries, and foreign direct investment has significant positive influence only in Pakistan. It will be worthy to say that foreign direct investment, exports and remittances have roles to play for a country’s development as long as they become greater in terms of volume and their ratio to GDP.

Published in	Economics (Volume 12, Issue 1)
DOI	10.11648/j.eco.20231201.12
Page(s)	15-23
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Economic Growth, Comparative Study, Foreign Direct Investment, Exports, Remittances

References

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APA Style

SM Shoayeb Noman. (2023). Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries. Economics, 12(1), 15-23. https://doi.org/10.11648/j.eco.20231201.12

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ACS Style

SM Shoayeb Noman. Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries. Economics. 2023, 12(1), 15-23. doi: 10.11648/j.eco.20231201.12

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AMA Style

SM Shoayeb Noman. Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries. Economics. 2023;12(1):15-23. doi: 10.11648/j.eco.20231201.12

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@article{10.11648/j.eco.20231201.12,
  author = {SM Shoayeb Noman},
  title = {Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries},
  journal = {Economics},
  volume = {12},
  number = {1},
  pages = {15-23},
  doi = {10.11648/j.eco.20231201.12},
  url = {https://doi.org/10.11648/j.eco.20231201.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20231201.12},
  abstract = {Due to globalization, there has been a significant amount of growth in foreign direct investment, exports, imports and remittances which exaggerate the interaction between states, regions and firms. It became obvious for the developing countries like Sri Lanka, Pakistan, India and Bangladesh to take the advantage and stimulate their economic growth through trade and investment. Literature shows that the relationship among these macroeconomic variables is ambiguous as some of the macroeconomic variables have positive impact on growth and others have negative impact, and vice-versa. Keeping this in mind, this paper examines what influence that foreign direct investment, export, gross capital formation, labor force participation and remittances have on economic growth based on a time series data to realize the meticulous scenario. Both descriptive and inferential statistics were implied here where RGDP was response variable and the rest five were explanatory variables. Ordinary Least Square method of multiple linear regression and correlation were carried out and the results disclose that gross capital formation and remittance have significant positive influence, export has significant negative impact on RGDP for most of the countries, and foreign direct investment has significant positive influence only in Pakistan. It will be worthy to say that foreign direct investment, exports and remittances have roles to play for a country’s development as long as they become greater in terms of volume and their ratio to GDP.},
 year = {2023}
}

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TY  - JOUR
T1  - Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries
AU  - SM Shoayeb Noman
Y1  - 2023/03/16
PY  - 2023
N1  - https://doi.org/10.11648/j.eco.20231201.12
DO  - 10.11648/j.eco.20231201.12
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 15
EP  - 23
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20231201.12
AB  - Due to globalization, there has been a significant amount of growth in foreign direct investment, exports, imports and remittances which exaggerate the interaction between states, regions and firms. It became obvious for the developing countries like Sri Lanka, Pakistan, India and Bangladesh to take the advantage and stimulate their economic growth through trade and investment. Literature shows that the relationship among these macroeconomic variables is ambiguous as some of the macroeconomic variables have positive impact on growth and others have negative impact, and vice-versa. Keeping this in mind, this paper examines what influence that foreign direct investment, export, gross capital formation, labor force participation and remittances have on economic growth based on a time series data to realize the meticulous scenario. Both descriptive and inferential statistics were implied here where RGDP was response variable and the rest five were explanatory variables. Ordinary Least Square method of multiple linear regression and correlation were carried out and the results disclose that gross capital formation and remittance have significant positive influence, export has significant negative impact on RGDP for most of the countries, and foreign direct investment has significant positive influence only in Pakistan. It will be worthy to say that foreign direct investment, exports and remittances have roles to play for a country’s development as long as they become greater in terms of volume and their ratio to GDP.
VL  - 12
IS  - 1
ER  -

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Author Information

SM Shoayeb Noman

School of Business, Uttara University, Dhaka, Bangladesh

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APA Style

SM Shoayeb Noman. (2023). Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries. Economics, 12(1), 15-23. https://doi.org/10.11648/j.eco.20231201.12

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ACS Style

SM Shoayeb Noman. Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries. Economics. 2023, 12(1), 15-23. doi: 10.11648/j.eco.20231201.12

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AMA Style

SM Shoayeb Noman. Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries. Economics. 2023;12(1):15-23. doi: 10.11648/j.eco.20231201.12

Copy | Download

@article{10.11648/j.eco.20231201.12,
  author = {SM Shoayeb Noman},
  title = {Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries},
  journal = {Economics},
  volume = {12},
  number = {1},
  pages = {15-23},
  doi = {10.11648/j.eco.20231201.12},
  url = {https://doi.org/10.11648/j.eco.20231201.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20231201.12},
  abstract = {Due to globalization, there has been a significant amount of growth in foreign direct investment, exports, imports and remittances which exaggerate the interaction between states, regions and firms. It became obvious for the developing countries like Sri Lanka, Pakistan, India and Bangladesh to take the advantage and stimulate their economic growth through trade and investment. Literature shows that the relationship among these macroeconomic variables is ambiguous as some of the macroeconomic variables have positive impact on growth and others have negative impact, and vice-versa. Keeping this in mind, this paper examines what influence that foreign direct investment, export, gross capital formation, labor force participation and remittances have on economic growth based on a time series data to realize the meticulous scenario. Both descriptive and inferential statistics were implied here where RGDP was response variable and the rest five were explanatory variables. Ordinary Least Square method of multiple linear regression and correlation were carried out and the results disclose that gross capital formation and remittance have significant positive influence, export has significant negative impact on RGDP for most of the countries, and foreign direct investment has significant positive influence only in Pakistan. It will be worthy to say that foreign direct investment, exports and remittances have roles to play for a country’s development as long as they become greater in terms of volume and their ratio to GDP.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries
AU  - SM Shoayeb Noman
Y1  - 2023/03/16
PY  - 2023
N1  - https://doi.org/10.11648/j.eco.20231201.12
DO  - 10.11648/j.eco.20231201.12
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 15
EP  - 23
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20231201.12
AB  - Due to globalization, there has been a significant amount of growth in foreign direct investment, exports, imports and remittances which exaggerate the interaction between states, regions and firms. It became obvious for the developing countries like Sri Lanka, Pakistan, India and Bangladesh to take the advantage and stimulate their economic growth through trade and investment. Literature shows that the relationship among these macroeconomic variables is ambiguous as some of the macroeconomic variables have positive impact on growth and others have negative impact, and vice-versa. Keeping this in mind, this paper examines what influence that foreign direct investment, export, gross capital formation, labor force participation and remittances have on economic growth based on a time series data to realize the meticulous scenario. Both descriptive and inferential statistics were implied here where RGDP was response variable and the rest five were explanatory variables. Ordinary Least Square method of multiple linear regression and correlation were carried out and the results disclose that gross capital formation and remittance have significant positive influence, export has significant negative impact on RGDP for most of the countries, and foreign direct investment has significant positive influence only in Pakistan. It will be worthy to say that foreign direct investment, exports and remittances have roles to play for a country’s development as long as they become greater in terms of volume and their ratio to GDP.
VL  - 12
IS  - 1
ER  -

Copy | Download