Fluctuation of FDI Inflow in Bangladesh-Obstacles and Potentials: An Issue of Policy Failure

Abstract

Foreign Direct Investment (FDI) plays a significant role in the economic development of a country especially for the developing countries. Bangladesh also pays much attention on the FDI inflow over the last decades. Economic development of Bangladesh is largely dependent on FDI inflow but over the last few decades the FDI inflow was not consistent. This study was conducted to find out the reason of fluctuation on FDI inflows in Bangladesh as well as its obstacles and potentials. Content analysis method was followed and secondary data were collected to analyze the FDI inflows in Bangladesh. It was evident from the study that the major challenges for Bangladesh to create a lucrative and conducive investment climate to the foreign investors. Though the FDI inflow in Bangladesh is increasing gradually but due to political unrest in the country over the last few decades made the investment climate difficult for the foreign investors to keep faith on sustainable business environment. Therefore, strong political will and FDI favorable business climate may be one of the options to increase FDI inflow in Bangladesh.

DOI: 10.5901/mjss.2013.v4n2p695