TY - JOUR
T1 - Exploring the nexus between FDI inflows and economic growth
T2 - A sectoral level analysis
AU - Mohsin, A. K.M.
AU - Ahmed, Sayed Farrukh
AU - Shumshunnahar, Mst
AU - Rahman, Arifur
AU - Amer, Ebrahim Abbas Abdullah Abbas
AU - Tushar, Hasanuzzaman
N1 - Publisher Copyright:
Copyright: © 2024 ai-jun et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
PY - 2024/5
Y1 - 2024/5
N2 - This study investigates the relationship between Foreign Direct Investment (FDI) inflows and economic growth at sectoral levels in Bangladesh, employing a panel study framework. Utilizing sectoral-level panel data spanning six sectors from 2007-08 to 2018-19, the analysis is conducted using Panel Vector Error Correction Model (Panel VECM). Results from panel unit root tests confirm that all variables are integrated of order one I (1), indicating stationarity. The Pedroni panel co-integration test further supports the presence of co-integration among the variables. Notably, the Panel VECM reveals evidence of a unidirectional causal relationship from Real Gross Domestic Product (RGDP) to Real Foreign Direct Investment (RFDI) across all six sectors of Bangladesh. The findings underscore the significance of formulating pragmatic policies and implementing them effectively to attract FDI across sectors, thereby contributing to the overall economic growth of Bangladesh.
AB - This study investigates the relationship between Foreign Direct Investment (FDI) inflows and economic growth at sectoral levels in Bangladesh, employing a panel study framework. Utilizing sectoral-level panel data spanning six sectors from 2007-08 to 2018-19, the analysis is conducted using Panel Vector Error Correction Model (Panel VECM). Results from panel unit root tests confirm that all variables are integrated of order one I (1), indicating stationarity. The Pedroni panel co-integration test further supports the presence of co-integration among the variables. Notably, the Panel VECM reveals evidence of a unidirectional causal relationship from Real Gross Domestic Product (RGDP) to Real Foreign Direct Investment (RFDI) across all six sectors of Bangladesh. The findings underscore the significance of formulating pragmatic policies and implementing them effectively to attract FDI across sectors, thereby contributing to the overall economic growth of Bangladesh.
KW - Economic Development
KW - Bangladesh
KW - Investments/economics
KW - Humans
KW - Gross Domestic Product
KW - Models, Economic
UR - http://www.scopus.com/inward/record.url?scp=85193594423&partnerID=8YFLogxK
U2 - 10.1371/journal.pone.0301220
DO - 10.1371/journal.pone.0301220
M3 - Article
C2 - 38758823
AN - SCOPUS:85193594423
SN - 1932-6203
VL - 19
JO - PLoS ONE
JF - PLoS ONE
IS - 5
M1 - e0301220
ER -