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An Empirical Study on the Relationship between Foreign Investment and International Trade in Bangladesh

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  • Mohammad Zillur Rahman

Abstract

Bangladesh is home to large unskilled and semi-skilled population and lacks adequate domestic employment opportunity due to scarcity of foreign direct investment (FDI) which may foster its economic growth. And this country has also been experiencing significant increase in international trade in recent years compared with the scenario of last decade. In this backdrop, the author aims at empirically searching whether these FDI and international trade bolster or hinder growth of each other or not. Taking Bangladesh data of imports, exports and FDI covering the period between 1972-2007, the test for cointegration could not reject the hypothesis of no cointegration (r

Suggested Citation

  • Mohammad Zillur Rahman, 2011. "An Empirical Study on the Relationship between Foreign Investment and International Trade in Bangladesh," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 2(2), pages 33-39, July.
    • Handle: RePEc:jfr:ijfr11:v:2:y:2011:i:2:p:33-39
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    References listed on IDEAS

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    1. KARGI, Bilal, 2014. "Portfolio in Turkish Economy, and A Long Termed Relation Between Foreign Direct Investments and The Growth, and The Structural Breakage Analysis (1980-2012)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(1), pages 70-81.
    2. Champa Bati Dutta & Mohammed Ziaul Haider & Debasish Kumar Das, 2017. "Dynamics of Economic Growth, Investment and Trade Openness: Evidence from Bangladesh," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(1), pages 82-104, June.

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