DOI: https://doi.org/10.59321/BAUETJ.V4I1.16
AUTHOR(S)
Sanuar Hossain1,*, Dr. Mushfiqur Rahman2, Sabiha Nasrin3 , Dr. Syed Nazmul Huda4
ABSTRACT
The study aims at determining the impact of foreign direct investment (FDI) on the gross domestic product (GDP) growth rate in Bangladesh. The study also attempted to demonstrate the trend of FDI inflow and GDP growth rate over the period of 1980-2019. The proposed study was conducted on the basis of secondary data collected from the world economic data indicator. The data were analyzed by using a linear regression model with SPSS tools. The study mainly considers two variables of which FDI is an independent variable and GDP growth rate is the dependent variable. The result of the linear regression model shows that there is a significant positive relationship between FDI and GDP growth rate. The value of R square is .436 which indicates that the value of GDP is influenced by FDI by at least 43.60%. Furthermore, the trend line of FDI inflow and GDP growth rate shows resilience over the study period with a 6.76% of GDP growth rate over 2010-2019 and an average of 2000 million USD received as FDI in the last ten years. The study results can be used by policymakers to set out an appropriate monetary and fiscal policy for our country.