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FDI and export linkage revisited: The case of Bangladesh

Author

Listed:
  • Muhammad Shariat Ullah

    (Associate Professor, Department of Management, University of Dhaka.)

  • Farida Yasmeen

    (Junior Research Fellow and Research Assistant, Bangladesh Institute for Research, Dhaka, Bangladesh.)

Abstract

This empirical research examines the export effect of foreign direct investment (FDI) with reference to Bangladesh economy. An export supply function extended with the FDI variable has been employed with panel data. Econometric estimations unveil clear-cut contribution of inward FDI to boost export. Thus, this study ascertains that FDI and export are positively related to each other which mean trade and factor flows act as complements. Under such circumstance, higher growth of FDI will promote export growth.

Suggested Citation

  • Muhammad Shariat Ullah & Farida Yasmeen, 2014. "FDI and export linkage revisited: The case of Bangladesh," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 2(1), pages 1-13, February.
  • Handle: RePEc:lrc:lareco:v:2:y:2014:i:1:p:14-19
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    More about this item

    Keywords

    Bangladesh; Complements and substitutes; Export; Foreign direct investment.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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