Abstract
The purpose of this paper is to identify the home country macroeconomic drivers of Outward Foreign Direct Investment (OFDI) from Bangladesh for the period 1985-2018. The study employs Autoregressive Distributed Lags (ARDL) bound testing approach suggested by Pesaran et al.(2001) to find the long run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model. Our empirical results indicate a positive impact of GDP per capita, exports and inward FDI on outward FDI in the long run. In short run, GDP per capita, infrastructure availability and skill level of the home country turn out to be significant determinants of outward FDI from Bangladesh. The study is the first empirical effort to identify the long run and short run home country macroeconomic drivers of Outward Foreign Direct Investment using time series datain the context of Bangladesh.
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Article Details
- Year: 2022
- Volume: 43
- Issue: 3
- Pages: 49 - 70
- Accepted: 01.09.2022
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DOI:
https://doi.org/10.5281/zenodo.16900095 -
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How to Cite?
Tahera Khanam, Shruti Shastri (2022). Macroeconomic Drivers of Outward Foreign Direct Investment from Bangladesh: A Time Series Analysis. Journal of Economic Cooperation and Development, 43(3), 49-70. https://doi.org/10.5281/zenodo.16900095
