ScholarLens Back to search
2015•Journal of Economics and Sustainable DevelopmentRequires access

Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) in Bangladesh: A Cointegration Analysis

Ibrahim Kaleem, Mohammad Morshedur Rahman, Md. Ali Arshad Chowdhury

Open publisher page 3 citations

Abstract

This paper investigates the long-run relationship between GDP and FDI in Bangladesh for a period of 42 years ranges from 1972 to 2013 by using time series econometric technique. The empirical results show that there is a significant positive correlation between GDP and FDI. The results also show that FDI and GDP are cointegrated in the long-run. For the supplement of the results of cointegration analysis, this study also examine the causal relationships by using Granger causality test and find strong evidence for unidirectional causality running between GDP through FDI in the long run. Keywords: FDI, GDP, Unit Root, Cointegration, Granger Causality

About this research paper

What this paper is about

This paper investigates the long-run relationship between GDP and FDI in Bangladesh for a period of 42 years ranges from 1972 to 2013 by using time series econometric technique. The empirical results show that there is a significant positive correlation between GDP and FDI. The results also show that FDI and GDP are cointegrated in the long-run. For the supplement of the results of cointegration analysis, this study also examine the causal relationships by using Granger causality test and find strong evidence for unidirectional causality running between GDP through FDI in the long run. Keywords: FDI, GDP, Unit Root, Cointegration, Granger Causality

Why it matters

OpenAlex reports 3 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This paper investigates the long-run relationship between GDP and FDI in Bangladesh for a period of 42 years ranges from 1972 to 2013 by using time series econometric technique. The empirical results show that there is a significant positive correlation between GDP and FDI. The results also show that FDI and GDP are cointegrated in the long-run. For the supplement of the results of cointegration analysis, this study also examine the causal relationships by using Granger causality test and find strong evidence for unidirectional causality running between GDP through FDI in the long run. Keywords: FDI, GDP, Unit Root, Cointegration, Granger Causality

Key concepts: Cointegration, Foreign direct investment, Economics, Granger causality, Unit root, Gross domestic product, Causality (physics), Econometrics

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Foreign Direct Investment (FDI) and Gross Domestic Product (GDP) in Bangladesh: A Cointegration Analysis — Research Paper | ScholarLens