Impact of Foreign Direct Investment on Economic Growth: Empirical Evidence from Bangladesh

The core objective of this study is to evaluate the impact of Foreign Direct Investment (FDI) on the economic development of Bangladesh. To attain the objective, this paper has conducted statistical analyses of the relationships between FDI and its impact on selected macroeconomic indicators such as Gross Domestic Product, Inflation Rate, and Balance of Trade. The study has examined time series data over a period of fifteen years, from 1999 to 2013. Multiple Regression Analyses were utilized to measure the relationship between independent (FDI) and dependent variables (macroeconomic indicators). The results obtained in this research signify a negative correlation between FDI and economic growth and may be a concern for the government of Bangladesh. The government might focus on required reforms and policy implications to make foreign investment more beneficial.