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An Empirical Study on the Relationship between Foreign Investment and International Trade in Bangladesh

Mohammad Zillur Rahman

International Journal of Financial Research, 2011, vol. 2, issue 2, 33-39

Abstract: Bangladesh is home to large unskilled and semi-skilled population and lacks adequate domestic employment opportunity due to scarcity of foreign direct investment (FDI) which may foster its economic growth. And this country has also been experiencing significant increase in international trade in recent years compared with the scenario of last decade. In this backdrop, the author aims at empirically searching whether these FDI and international trade bolster or hinder growth of each other or not. Taking Bangladesh data of imports, exports and FDI covering the period between 1972-2007, the test for cointegration could not reject the hypothesis of no cointegration (r

Keywords: FDI; Trade; Cointegration; Granger causality; Error¨Ccorrection model (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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