International Journal of Economics and Business Administration
Articles Information
International Journal of Economics and Business Administration, Vol.6, No.4, Dec. 2020, Pub. Date: Dec. 24, 2020
Measuring the Impact of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP) of Bangladesh
Pages: 163-168 Views: 1256 Downloads: 363
Authors
[01] Shekh Md Sahiduj Jaman, Department of Marketing, Hajee Mohammad Danesh Science & Technology University, Dinajpur, Bangladesh.
[02] Bipul Roy, Department of Accounting, Hajee Mohammad Danesh Science & Technology University, Dinajpur, Bangladesh.
[03] Md Abdur Rouf, Department of Marketing, Hajee Mohammad Danesh Science & Technology University, Dinajpur, Bangladesh.
[04] Md Asaduzzaman Babu, Department of Marketing, Hajee Mohammad Danesh Science & Technology University, Dinajpur, Bangladesh.
[05] Md Sadat Salim Islam, Department of Marketing, Hajee Mohammad Danesh Science & Technology University, Dinajpur, Bangladesh.
[06] Md Sabber Ahmed, Department of Accounting, Hajee Mohammad Danesh Science & Technology University, Dinajpur, Bangladesh.
Abstract
This paper investigates the impact of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP) of Bangladesh. This study evaluates the relationship between FDI and GDP. That’s why we have selected the research title “Measuring the impact of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP) of Bangladesh. For conducting this study, we have taken the secondary source of data series for years from 1972 to 2017. The study analyzed by unit root test, co-integration and granger causality test to figure out the exact impact of FDI on GDP. The result of the study showed that there is a significance positive relationship between FDI and GDP. The GDP of the country was positively affected by FDI. The study told us that the policy maker of the country should work to increase the participation of foreign investors. Though the study showed a positive impact, the study hasn’t specified the antecedents of GDP and the issues related to increase or decrease of FDI. The future research work should be conducted on these issues. The Granger Causality results evidence unidirectional causality effect the relationship between FDI and GDP. The result showed that the impact of FDI on GDP is positive.
Keywords
Foreign Direct Investment (FDI), Gross Domestic Product (GDP), Impact of FDI on GDP, Bangladesh
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