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Major Determinants and Hindrances of Fdi Inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers

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Submitted By tasnubanowrin
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Major Determinants and Hindrances of FDI inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers
An assignment on Major Determinants and Hindrances of FDI inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers

Submitted To:
S. M. Zahidur Rahman
Associate Professor

Submitted By: Tasnuba Nowrin ID-090316 Fatema Khatun ID- 090349

KHULNA UNIVERSITY
Business Administration Discipline
BBA Program
4th Year, 1st Term Course Title: Financial Management and Institution
Course No: FIN-4203

September 10, 2012

Summary on previous article
Foreign Direct Investment (FDI) is considered as a crucial component for economic development of a developing country. Countries that are lagging behind to attract FDI are now formulating and implementing new policies for attracting more investment. The determinants which play as a driving force for attracting FDI are geographical location, cheap labour cost, and government attitude towards liberalization of the existing laws of the host country, skilled manpower, incentives for investors, and exemption of taxes etc. According to Bangladesh Board of Investment Handbook (2007) Bangladesh offers an attractive investment climate compared to other South Asian Economies. But among the emerging economies India and China are the desired choice for investment (Baskaran and Muchie, 2008).
FDI is considered as an important tool for economic development in a developing country. If the investing country is wealthier than the host country then capital will flow to the host country (Zhao, 2003). It contributes to growth of GDP; create employment generation, technology transfer, human resource development, etc. It is also perceived that FDI can play a significant role to reduce poverty of a developing country.
In the developing world, the East Asian countries - South...

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