Impact of Foreign Direct Investment on Domestic Investment in Bangladesh

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Impact of Foreign Direct Investment on Domestic Investment in Bangladesh

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Abstract

This study examines the impact of foreign direct investment inflows on domestic investment in Bangladesh by using time series data for the period of 1978 to 2017. Gross Capital Formation (GCF) is used as dependent variable (which is proxy of domestic investment) and Foreign Direct Investment (FDI), broad money (M2), export (EX) are used as independent variables. ADF test is used for testing stationary of taken variables in the model. Hence, some variables are stationary at level and one is at first difference, Autoregressive Distributed Lag (ARDL) estimation technique is used to accomplish the analysis. The result shows that in the long run and short run there is a positive but insignificant relation between foreign direct investment and domestic investment and relationship between export and domestic investment also positive and significant.

References

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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

Hamida Begum, Nurun Nahar Akhi. 2019. "Impact of Foreign Direct Investment on Domestic Investment in Bangladesh". Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 19 (GJHSS Volume 19 Issue E6).

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Keywords
Classification
GJHSS-E Classification FOR Code: 140299
Version of record

v1.2

Issue date
August 19, 2019

Language
English
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Impact of Foreign Direct Investment on Domestic Investment in Bangladesh

Hamida Begum
Hamida Begum National University, Asian University of Bangladesh
Nurun Akhi
Nurun Akhi