THE IMPACT OF FOREIGN DIRECT INVESTMENT (FDI) IN BANGLADESH

Abstract

Foreign direct investment (FDI) is an investment made by an entity located in another country in the form of a majority stake in a country's operations. The source of the investment does not affect the definition of foreign direct investment: when buying an asset in the country of destination, the investment can be made "inorganically" or it can be invested "naturally" to expand existing business activities in the country. The main objective of this research is to evaluate the impact of foreign direct investment (FDI) on the economic development of Bangladesh. Economic indicators also reflect economic scenarios that show the real situation in countries like Bangladesh. Therefore, it can be defined as foreign direct investment in this sense and can represent Bangladesh as one of the development indicators in terms of development structure. The purpose of the study was to focus on the state of FDI in Bangladesh and its problems and remedies. Indeed, the study found that the contribution of FDI from developed and developing countries to Bangladesh is not as high due to some uncertainties, such as the disparity in the relationship between savings and investment, low GDP and trade deficits, political unrest, etc. To develop the FDI scenario in Bangladesh, this study describes some recommendations.