Chinese Outward Foreign Investment in Developing Countries: A Case Study of Bangladesh

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Chinese Outward Foreign Investment in Developing Countries: A Case Study of Bangladesh

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Abstract

This paper classifies the incentives preferred by the Chinese Outward foreign direct investment (OFDI) in Bangladesh. It is mentionable that incentives choice criterion of FDI mostly depends on the socioeconomic condition of the host country, strategies followed by that country with the home country, geographical aspect etc. Elsewhere they try to take advantages from the host country because of them widen market share as well as one of the largest economy in the world. China working with Bangladesh for development FDI is the one initiative. A series of policy incentives, investment sovereignty has been offered to the FDI investors including tax holiday for several years, duty free facility for importing capital machinery, 100% foreign ownership, 100% profit repatriation facility, reinvestment of profit or dividend as FDI, multiple visa, work permit to foreign executives, permanent resident or even citizenship for investing a specific amount, and easy hassle free exit facility. Potential sectors of can attract more FDI are power generation, infrastructure development, private port establishment, joint venture, agro processed product, electrical & electronics, light engineering, and fashion designing etc. After so many incentives offered by the government till now FDI Inflow into Bangladesh is not at a satisfactory level. During last few years fresh FDI investment in not taking place. From the statistics of last few years it is quite clear that, reinvestment of locally earned profit is the major amount of FDI into Bangladesh. Fresh FDI inflow is decreasing day by day. Government has to investigate the issue and undertake necessary measures to increase fresh FDI into Bangladesh.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Mohammad Maruf Hasan. 2018. "Chinese Outward Foreign Investment in Developing Countries: A Case Study of Bangladesh". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 18 (GJMBR Volume 18 Issue B6).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-B Classification JEL Code: O24
F21
Version of record

v1.2

Issue date
September 7, 2018

Language
English
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Chinese Outward Foreign Investment in Developing Countries: A Case Study of Bangladesh

Mohammad Hasan
Mohammad Hasan Xiamen University