TY - JOUR AU - Iftekhar Ahmed Robin, PY - 2007/06/30 Y2 - 2024/03/28 TI - FOREIGN DIRECT INVESTMENT: IMPACT ON SECTORAL GROWTH IN BANGLADESH JF - NDC E-JOURNAL JA - NDC E-JOURNAL VL - 6 IS - 1 SE - DO - UR - https://ndcjournal.ndc.gov.bd/ndcj/index.php/ndcj/article/view/48 SP - 181-191 AB - <p>This paper examines the impact of Foreign Direct Investment (FDI) on the sectoral (agriculture,<br>industry and service) growth pattern of Bangladesh economy over the last 11 years, 1995-2005.<br>Analysing data from secondary sources the study estimates the relationship between the inflow of<br>FDI and annual output growth achieved in different sectors by computing correlation co-efficient<br>and corresponding p-values. The analyses reveal that FDI inflow in the industrial sector does not<br>appear to correlate much with industrial growth, however, it relates better with service sector growth.<br>FDI inflow in service sector is fairly well correlated with the growth in that sector as well as in the<br>industrial sector. FDI in agricultural sector does not have any close relationship with the sectoral<br>growth pattern. One interesting point is that over the period 1995 to 2005, the country enjoyed<br>a positive net FDI inflow except 2003 and 2004, when foreign investors have taken out more<br>money than they have pumped into the country through repatriation of profit/dividend, capital<br>and repayment of loans with foreign banks and other sources. The paper also provides some policy<br>suggestions and recommendations for weighing up the advantages and disadvantages of FDI to<br>ensure enhanced growth and sustainability.</p> ER -