Fdi In Bangladesh Essay

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FDI in Bangladesh
Investment Registration Statistics in Bangladesh
For the development of the business organization in the industry sector investment is very important. The investment in the industrial sector covers the different issues like private investment or public investment, local investment or foreign investment. Investment in the industrial sector analysis helps in having a proper understanding on FDI and its impact in the invested sectors as well as in the economic conditions of the developing countries. Being the Third Country Nation, Bangladesh is consistently improving in attracting FDI basically in the private industrial sectors. This is happening from the beginning of 1990’s when the concept of FDI initiated. As a result the
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The GDP or GDP per capita actually helps to identify the market size of the respective sectors. Artige and Nicolini (2005) at least think so regarding market size. In the econometric study, the GDP per capital act the core determinants of the FDI. On the other hand, Jordaan (2004) thinks that, FDI flows becomes smooth where there are possibilities of expanding the market, the purchasing power of the people is relatively high, and return on investment is also high. These factors determine the flows of FDI in the country for the economic benefits of the country. The higher return helps the employees to reinvest in the sector which actually act as the beneficial factors for the country’s economy. However, different authors think about the market size differently. Chakrabarti (2001) believes that for the effective usage of the resources requires the large markets in the country. The larger the markets, the better will be the utilization of resources and this ensures the economies of scale in the market. This information has been identified by analyzing the market-size hypothesis. Gradually, when the market reached to the critical points, than FDI tries to play its role to enhance the business activities of the organizations. The theory becomes more practical and famous and the variable which shows the market size of the host countries makes the concept more visible to everyone which acts as the top of all the experimental theories on the elements of

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