Growth Performance and Forecasts of FDI Inflows to Bangladesh

Abstract

Bangladesh is on the track toward becoming an attractive destination for FD/ in the South Asian region. The present study is an attempt to.find the growth performance and forecasts of FD/ inflows to Bangladesh. The study concludes that Bangladesh has been able to attain the growth rate of FD/ which surpasses the growth rate of FD/ inflows to South Asia. South Asian aggregate FD/ inflows have registered a growth rate of 24.58 percent during the period of 1991-2010. But, the growth rate in case of FD/ inflows to Bangladesh is as high as 31.74 percent. It means that it can come up to the level of its counterpart.1· South Asian countries like India, Pakistan and Iran if it adopts a pro active FD/ policy. Ne\·ertheless, keeping in view the past trends and future projections, Bangladesh needs to put in place a comprehensive development strategy which includes being wide open to FD/. Efforts must be made to ensure that the acllial inflows do exceed the forecasted figures.