Next Article in Journal
Germany versus the United States: Monetary Dominance in the Eurozone
Next Article in Special Issue
Technical Efficiency and Its Determinants of Rice Production in Cambodia
Previous Article in Journal
Nonlinear Monetary Policy Rules: An Essay in the Comparative Study on Egyptian and Tunisian Central Banks
Previous Article in Special Issue
Drivers of Growth in the Travel and Tourism Industry in Malaysia: A Geweke Causality Analysis
Open AccessArticle

Foreign Direct Investment, Trade, and Economic Growth: An Empirical Analysis of Bangladesh

1
College of Business, Dillard University, New Orleans, LA 70122, USA
2
Scott College of Business, Indiana State University, Terre Haute, IN 47809, USA
*
Author to whom correspondence should be addressed.
Academic Editor: David O. Dapice
Economies 2016, 4(2), 7; https://doi.org/10.3390/economies4020007
Received: 7 January 2016 / Revised: 29 March 2016 / Accepted: 31 March 2016 / Published: 15 April 2016
(This article belongs to the Special Issue Economic Development in Southeast Asia)
The study reveals that there is a relationship between foreign direct investments, trade, and growth rate of per capita GDP for Bangladesh with the help of annual time series data for 1973 to 2014. The Vector Error Correction Model (VECM) analysis shows that there is a long-term relationship between these variables. To check the validity of the VECM model, we did a few post-estimation diagnostic tests, and found that the residuals of the regressions have a normal distribution and do not show any auto-correlation. The trade and foreign investment variables have a significant impact on the growth rate of GDP per capita. Because FDI and trade are two important components of economic growth in Bangladesh, it is important to frame policies that promote growth and reduce the barriers for capital flows. View Full-Text
Keywords: foreign direct investments; economic growth; Bangladesh; trade foreign direct investments; economic growth; Bangladesh; trade
Show Figures

Figure 1

MDPI and ACS Style

Hussain, M.E.; Haque, M. Foreign Direct Investment, Trade, and Economic Growth: An Empirical Analysis of Bangladesh. Economies 2016, 4, 7.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map

1
Back to TopTop