TY - JOUR
T1 - Foreign direct investment-growth nexus revisited : new evidence from Bangladesh
AU - Begum, Munira
AU - Salahuddin, Mohammad
AU - Chowdhury, Mamta
AU - Wahid, Abu N. M.
PY - 2018
Y1 - 2018
N2 - Due to mixed empirical findings, Foreign Direct Investment (FDI)-growth nexus is still an issue of debate. This paper estimates the long-run association between FDI and economic growth for Bangladesh using time series data for the period 1985–2014. Results from dynamic ordinary least squares demonstrate positive and significant long-run relationship between FDI and economic growth. A bidirectional causality also exists between them. The study further indicates that financial development (FD) and trade openness (TO) also Granger cause economic growth. Variance decomposition analysis results confirm the future positive role of FDI, TO and FD in the context of Bangladesh. Policy implications are discussed.
AB - Due to mixed empirical findings, Foreign Direct Investment (FDI)-growth nexus is still an issue of debate. This paper estimates the long-run association between FDI and economic growth for Bangladesh using time series data for the period 1985–2014. Results from dynamic ordinary least squares demonstrate positive and significant long-run relationship between FDI and economic growth. A bidirectional causality also exists between them. The study further indicates that financial development (FD) and trade openness (TO) also Granger cause economic growth. Variance decomposition analysis results confirm the future positive role of FDI, TO and FD in the context of Bangladesh. Policy implications are discussed.
KW - investments, foreign
KW - economic development
KW - least squares
KW - Bangladesh
UR - http://handle.westernsydney.edu.au:8081/1959.7/uws:47636
UR - http://www.econjournals.com/index.php/ijefi/article/view/6570
M3 - Article
SN - 2146-4138
VL - 8
SP - 168
EP - 174
JO - International Journal of Economics and Financial Issues
JF - International Journal of Economics and Financial Issues
IS - 3
ER -
