Description

FDI is viewed as a major stimulus to economic growth in developing countries as it brings prosperity to the recipient countries through technological transfer, increasing volume of exports, enhancing job opportunities and increasing government revenue. Realizing the importance of FDI, Bangladesh offers one of the most liberal regimes for FDI in South Asia and these policies are producing results in terms of increased inward investment. In FY 2013, USD 761.03 million came to Bangladesh as Equity Capital, USD 645.64 million worth earnings were reinvested, and USD 323.96 million worth intra-company loans inflowed. As FDI inflows are reported under the capital and financial account of the country’s Balance of Payments (BOP) statement which provides the direct effect on the BOP, inflow of FDI plays an important role in determining the surplus/deficit in the capital and financial account of the BOP statement. Bangladesh is now running fast towards emerging as an investment hub and endeavors to attract a lion’s share of FDIs among the South Asian countries in next few years to reach to the Vision 2021 target faster.