Relationship between Foreign Direct Investment and Company Taxation: Case of Bangladesh

Alim Al Ayub Ahmed
Additional contact information
Alim Al Ayub Ahmed: Assistant Professor, Faculty of Business, ASA University Bangladesh, Shyamoli, Dhaka-1207, BANGLADESH

American Journal of Trade and Policy, 2016, vol. 3, issue 1, 11-14

Abstract: This study examines the association between foreign direct investment and company taxation in Bangladesh from 2001-2010. The annual reports were sourced from the Bangladesh Bank Bulletin, Bangladesh Bureau of Statistics (BBS), and World Bank, which were analyzed using Descriptive Statistics, correlation, and regression. The independent variable corporate taxation was measured using corporate tax rate (CTR), whilst the dependent variable foreign direct investment was measured using FDI net inflow (% of GDP). GDP, exchange rate, and inflation rate were used as control variables. The result showed a significant negative relationship between CTR and FDI, whereas exchange rate and FDI indicated an insignificant negative relationship. On the other hand, GDP was positively insignificantly related to FDI, whilst inflation had a significant positive association with FDI. Based on the result, the study suggested that there is required for the government to lo trim down the corporate tax rate to create a center of attention for FDI in the country.

Keywords: Company Taxation; Corporate Tax Rate; Foreign Direct Investment (FDI); GDP; Bangladesh (search for similar items in EconPapers)
JEL-codes: H21 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://abc.us.org/ojs/index.php/ajtp/article/view/394/807 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:ajotap:0097

Access Statistics for this article

American Journal of Trade and Policy is currently edited by Charles A. Rarick

More articles in American Journal of Trade and Policy from Asian Business Consortium Asian Business Consortium, 10-B-6, Darussalam Tower, Mirpur Road, Dhaka-1216, Bangladesh.
Bibliographic data for series maintained by Alim Al Ayub Ahmed ( this e-mail address is bad, please contact ).