FDI and export linkage revisited: The case of Bangladesh

Muhammad Shariat Ullah () and Farida Yasmeen
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Muhammad Shariat Ullah: Associate Professor, Department of Management, University of Dhaka.
Farida Yasmeen: Junior Research Fellow and Research Assistant, Bangladesh Institute for Research, Dhaka, Bangladesh.

Journal of Economic and Financial Studies (JEFS), 2014, vol. 2, issue 1, 1-13

Abstract: This empirical research examines the export effect of foreign direct investment (FDI) with reference to Bangladesh economy. An export supply function extended with the FDI variable has been employed with panel data. Econometric estimations unveil clear-cut contribution of inward FDI to boost export. Thus, this study ascertains that FDI and export are positively related to each other which mean trade and factor flows act as complements. Under such circumstance, higher growth of FDI will promote export growth.

Keywords: Bangladesh; Complements and substitutes; Export; Foreign direct investment. (search for similar items in EconPapers)
JEL-codes: F13 F23 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:lrc:lareco:v:2:y:2014:i:1:p:14-19

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