Impact of Foreign Direct Investment on GDP Growth Rate of Bangladesh

Abstract

The paper assesses the influence of Foreign Direct Investment on the GDP growth rate of Bangladesh. Statistical analysis has been done to discover the connection concerning FDI and its impact on GDP growth rate. Some selected macroeconomics indicators which include Inflation, Gross capital formation, Labor force per hour, Trade are also considered. Annual data from 1976 -2017 is considered as study period. Model (VECM) with Co-integration analysis is taken through the aid of generating unit-root Augmented Dickey-Fuller test, Johansen tests for co-integration, Co-integrating Equations, Johansen normalization restriction.