Authors : Khandokar Mohammad. , Istiak and Kazi Mahmudur Rahman
Abstract: Bangladesh vestiges a fascinating country among the Least Developed Countries (LDCs) to be considered from the relating point of foreign direct investment (FDI) behaviour. Bangladesh continues to record a moderately high annual economic growth; currently accelerates her GDP growth rate (from 1980s: 3.84% to 1990s: 4.88%), decline in population growth rate (from 2.32% in early eighties to 1.5% in late nineties), achieved near full self-sufficiency in food grain production through expansion of HYV rice cultivation (17.85 MlnMT in 1991 and 23.07 MlnMT in 2000; about 30%), performed high growth of export sector (12.98% per annum during 1990s), made subsequent improvement in human development index (her position is 138 in 2004 compared to 139 in 2003 among 177 countries according to the Human Development Report by UNDP), achieved considerable success in mainstreaming of women by achieving gender parity in primary education, and almost removed gender gap in secondary education, demonstrated significant progress towards a viable democratic structure – change of government through three successive national elections. Share of private investment in GDP increased from 10.3% in FY91 to 16.5% in FY03. However, if Bangladesh desires to accomplish her targets as mentioned in the Millennium Development Goal (MDG) and MTMF (Medium-Term Macroeconomic Framework) of its Poverty Reduction Strategy Paper (PRSP) – with a view to implementing the National Strategy for Economic Growth, Poverty Reduction and Social Development, she desperately needs both domestic and foreign investment to boost the present trend of growth. Therefore, a case study on Bangladesh`s is quite useful in terms of understanding the potentials as well as limits of impact of FDI in the process of development in the low-income countries. This paper explores the recent trend, characteristics and policies of FDI in Bangladesh and in the South Asia including the impact of FDI and discouraging factors of inflow FDI.
Khandokar Mohammad. , Istiak and Kazi Mahmudur Rahman , 2005. Recent Issues of Foreign Direct Investment in LDCs: A Case Study of Bangladesh . Pakistan Journal of Social Sciences, 3: 322-334.