This paper examines the present FDI scenario of Bangladesh since 1971 along with an explanation of its significant trend. The various trend facilities, exemptions provided by the government of Bangladesh are also mentioned in the paper. Moreover, the paper also investigates those factors that are handle and affects current FDI situation using the annual data for 1996-2010. From the analysis, we found that market size, infrastructure facilities, trade openness, export promotion, labor cost and availability of skilled labor are the important factors that contribute most to affect FDI.
In Bangladesh, remittance is one of the most important economic variables in recent times as it has an impact on economic growth, helps in balancing balance of payments, increasing foreign exchange reserves, enhancing national savings and increasing velocity of money. For about two decades remittance has been contributing around 35% of export earnings. Moreover, it is greater than foreign aid and thus helps in lessening dependence on foreign aid remittance gets momentum in recent time in Bangladesh and is the second largest sector of foreign currency earnings after the garment; sector. If cost of imported raw materials is deducted from the foreign currency earning of the garments sector thanit becomes the largest sector of foreign currency earnings. Remittance earning ; increasing day by day but at a lower rate than the increase in emigration from Bangladesh due to the increasing share of unskilled or semi-skilled labors than the professionals in international migration. The share of remittance in GNI (Gross National Income) is increasing day by day. Remittance affects almost all the macro-economic indicators of a country positively. Though there are also negative sides of remittance earning e.g. brain drain, its overall contribution to Bangladesh economy is very much effective.
Budget deficit is one of the most significant macroeconomic issues which have been debated both in the academic and political arena since 1970s. This study aims to explore the current position of government budget deficit, its trends, and sources of budget deficit financing in Bangladesh, covering the duration between 1980 to 2018. Secondary data has been used which was collected from the Bangladesh Economic Review and the World Bank. Data has been analyzed through descriptive methods. The Government financing budget deficit from two sources like domestic and foreign sources. The study finds that Government finances most of its budget deficit from the domestic sources than foreign sources especially from non-banks sources due to the increase in the net sale of national savings certificates while borrowing from bank sources is on the decline. Along with the effective measures of generating more internal resources, the government should also focus on other areas to reduce the budget deficit. The government should be taking the approapriate steps to make progressively investable resources and generate a fund for financing the non-development spending in reducing the reliance on debt that can guarantee more distribution on the development sector.
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