Abstract: This paper reveals that Bangladesh encourage investment in the private sector, identify hindrances to investment and provide necessary facilities and assistance in the establishment of industries. The main objective of the study is to explore the Determinants and Impacts of FDI inflows, evaluate the recent developments and policy initiatives regarding the FDI environment, and the overall contribution of FDI inflows to the nation’s economic growth. To achieve the objectives and scope of work of this study, both qualitative and quantitative methods have been used. In carrying out this study, data regarding the environment, challenges, and potential recommendations have been collected from secondary sources. Suggestions that relate to the policy and regulatory space include reconsidering taxation policies, formation of a consultative committee and interacting with FDI stakeholders at regular intervals, wider promotion of economic success and FDI incentives, improving the quality of transparency and governance, improving dynamisms and inter-agency cooperation through technology adoption, improving port efficiency and connectivity with neighbors, longer and specific visa issuance for NRBs and foreign citizens, simplifying international mergers and acquisitions, and fighting COVID-19 with mass vaccination. Key suggestions to mitigate the market-related challenges include diversifying the economy, making infrastructure development an FDI destination sector, identifying potential source countries and destination sectors for the future, developing human resources with globally demanding skills, expert representation with diplomatic knowledge, and negotiation ability in international forums, and tapping the opportunities from the LDC graduation. The study also identifies for which recommendations other stakeholders such as the BIDA, National Board of Revenue, relevant ministries, and government agencies, and academic institutions could lead, coordinate, and cooperate.
Masum Billah Patowary, Farzana Alam, Arijita Roy, S. M. Rifat Hassan (2023). Determinants and Economic Impacts of Foreign Direct Investment in Bangladesh: An Empirical Analysis. Rethinking Governance, 2(1), 121—134. ISBN: 978-984-34-6959-5. Bangladesh Center for Governance Analysis.