The Need for Export Oriented FDI for Fueling Dynamic Export-led Economic Growth: A New Direction for Bangladesh.

Author(s)

tareq Mahbub ,

Download Full PDF Pages: 09-14 | Views: 356 | Downloads: 100 | DOI: 10.5281/zenodo.3464777

Volume 5 - May 2016 (05)

Abstract

Bangladesh has seen a substantial amount of private foreign investments in recent years, which have risen from a mere trickle in the 1980s to nearly US $ 400 million in fiscal year 1997-1998 to a record US $1.08 billion in 2008. It is believed that trade and exchange liberalization, current account convertibility and liberalization of investment regime have all helped to bring about this change. Most important, it is the opening of infrastructure and services to the private sector that has provided the biggest impetus to FDI in recent years. Despite these increased flows, it has been argued that there are some downside risks associated with FDI in Bangladesh, such as rising debt service payments, chronic current account deficits with prospects of negative net transfers looming on the horizon, and reporting difficulties by the Central Bank and the Board of Investment in the actual tracking and mobilization of these flows. There is also concern over the issue of sustaining these flows in the long-term, which would primarily depend on the importance of following sound macro-economic policies like maintaining stable exchange rates, low inflation and an open capital account that permits conversion of foreign exchange and repatriation of invested funds and most important, the development of ‘truly’ outward oriented ventures from MNEs for the sustainable development of FDI in Bangladesh. 

Keywords

Foreign Direct Investment, Direct Foreign Investment, Export Oriented FDI

References

  1. Aggarwal, A. (2001) „Liberalization, Multinational Enterprises and Export Performance: Evidence from Indian Manufacturing‟, Unpublished manuscript, Retrieved October, 2011 from the World Wide Web: www.unige.ch/iued/new/information/bibliotheque/ficljers_pdf/bulletin_articles_02_l0.pdf „
  2. Bangladesh Export Competitiveness‟, (2011) (Board of Investment), Retrieved May 2012 from the World Wide Web:http://boi.gov.bd/about-bangladesh/why-bangladesh/bangladesh-export- competitiveness
  3. Dunning, J. H. (1999) „Globalization and the theory of MNE activity‟, in N.Hood and S. Young (eds), The Globalization of Multinational Enterprise, London: Macmillan
  4. Dunning, J.H. (1998) „Location and the Multinational Enterprise: A Neglected Factor?‟, Journal of International Business Studies, Vol. 29, No. 1, 45-65.
  5. Hill, Charles W.L. (2003) International Business: Competing in the Global Marketplace, (4th ed.) NY: Irwin McGrawHill, Chapter 7.
  6. „Investment for Development Project‟, (2002) proceedings of the First National Reference Group (NRG) Meeting of the Bangladesh Chapter in Dhaka, (NRG Draft Summary Report), Retrieved October, 2011, from the World Wide Web: http://cuts.org/Bangladesh%2ONRG.doc
  7. Kumar (2001) „Infrastructure Availability, Foreign Direct Investment Inflows and Their Export-orientation: A Cross-Country Exploration‟, Retrieved May 2012, from the World Wide Web:://www.gdnet.org/pdf/nlcumar.pdf
  8. „Milestones‟ (Novartis Bangladesh, 2012) Retrieved June, 2012, from the World Wide Web: http://www.novartis.com.bd/time_2000.html
  9. Moran, Theodore H. (1998) Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies in Transition, Washington DC: Institute for International Economics.
  10. Nunnenkamp, P. (2002) „Determinants of FDI in Developing Countries: How Globalization Changed the Rules of the Game?‟, (Kiel Institute for World Economics Working Paper No. 1122), Retrieved October, 2011 from the World Wide Web: http://www.uni-kiel.de/ifw/pub/kap/2002/kap1122.pdf
  11. Paratian R. and Torres, R. (2001) Studies on the Social Dimensions of Globalization: Bangladesh, International Labour Office, Geneva. „
  12. RMG: The Mainstay of Bangladesh Economy‟, (BGMEA, 2012) Retrieved June, 2012, from the World Wide Web: http://www.bgmea.com.bd/home/pages/Strengths
  13. UNCTAD (2011) World Investment Report 2011, United Nations, Geneva.
  14. UNCTAD (1998) Trends and Determinants, United Nations, Geneva.
  15. UNCTAD (1995) Trends and Determinants, United Nations, Geneva.
  16. United Nations (2000) An Investment Guide to Bangladesh: Opportunities and Conditions, New York: United Nations.
  17. United Nations (1998) World Investment Report 1998: Trends and Determinants, United Nations, Geneva.
  18. United Nations (1996) World Investment Report 1996, United Nations, New York.
  19. World Bank (1999) Foreign Direct Investment in Bangladesh: Issues of Long-runSustainability, The World Bank, Washington, D.C., USA.

Cite this Article: