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An investigation of macroeconomic determinants of FDI inflows in Bangladesh

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Abstract

This research has investigated the macroeconomic factors of Foreign Direct Investment (FDI) inflows in Bangladesh by using a period of 1975-2015 and by using ARDL technique for estimation. Unit root analysis has shown a mix order of integration and cointegration has also been proved in the empirical exercise. Further, income, democracy and interest rate are showing positive impact on FDI inflows. But, trade openness is showing a negative influence on FDI inflows. Therefore, this paper recommends some qualitative checks on trade for FDI inflows promotion in Bangladesh.

Original languageEnglish
JournalAcademy of Accounting and Financial Studies Journal
Volume22
Issue number1
StatePublished - 1 Feb 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities
  2. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Keywords

  • Cointegration
  • Democracy
  • FDI inflows
  • Income

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