FDI and Export Linkage Revisited: The Case of Bangladesh Patterns in Neighboring Areas

This empirical research examines the export effect of foreign direct investment (FDI) with reference to Bangladesh economy. An export supply function extended with the FDI variable has been employed with panel data. Econometric estimations unveil clear-cut contribution of inward FDI to boost export. Thus, this study ascertains that FDI and export are positively related to each other which mean trade and factor flows act as complements. Under such circumstance, higher growth of FDI will promote export growth.