How is Bangladesh addressing its foreign debt and what are the recent trends in foreign direct investment (FDI)?
What is the role of foreign direct investment in the economy of Bangladesh?
Foreign direct investment (FDI) is a potent weapon of developing the Bangladesh economy and can play an important role in achieving the country's socio-economic objectives including poverty reduction goals. In a capital-poor country like Bangladesh,
FDI can emerge as a significant vehicle to build up physical capital, create employment
opportunities, develop productive capacity, enhance skills of local labor through transfer
of technology and managerial know-how, and help integrate the domestic economy with
the global economy. This policy note provides an assessment of the current situation of
FDI in Bangladesh and examines its impact on the country’s balance of payments. 