FDI refers to foreign direct investment, which occurs when a firm invests directly in facilities to produce or market a product in a foreign country. The presentation discusses FDI in Bangladesh, including factors that affect the country's FDI climate such as infrastructure, financial infrastructure, technological infrastructure, and international integration. It also examines variables related to FDI, including GDP, exports, and domestic investment as dependent variables, and FDI inflows as the independent variable. Regression analysis is used to show the impact of FDI inflows on GDP, finding a positive but not statistically significant relationship.

1. Presentation on
Foreign Direct Investment

4. Saurav Kumar Saha
ID no-13132627
Saurav Kumar Saha
ID no-13132627
Presentation on:
Foreign Direct Investment I
Presentation on:
Foreign Direct Investment I

5. 5
What is FDI?
• FDI (Foreign Direct Investment)
– FDI occurs when a firm invests directly in
facilities to produce and/or market a product in
a foreign country.

6. 6
Why FDI Is Important?
• Firms want a presence in foreign
markets.
• Firms want control over growth
of these foreign markets
– To gain first mover advantages.
– To ward off competitors.

7. Umme Nouseba Jahan Ema
ID no-13132622
Umme Nouseba Jahan Ema
ID no-13132622
Presentation on:
Methodology
Presentation on:
Methodology

8.  Methodology Description
 The internationally accepted definition of FDI is provided in
the fifth edition IMF’s balance of payments manual (1993).
Under this definition FDI has Three components which are
Equity , Investment , Re-invested earnings and short term and
long term inter-company loans.
 Sources:
 Secondary Data
 Primary Data

9.  Limitations Of The Methodology Study:
 Data limitation
 Time limitation
 Does not include capital raised locally
 Data captured only cross boarder investment

10. Habibur Rahman Chowdhury
ID no-13132603
Habibur Rahman Chowdhury
ID no-13132603
Presentation on:
Present Status of FDI in Bangladesh
Presentation on:
Present Status of FDI in Bangladesh

11. Present status of FDI in BANGLADESH
 FDI increased 1833.82 USD million in 2015 FY.
 Averaged FDI 916.07 USD million(2002-2015).
 Highest 1726 USD million in 2013 &lowest 276 in
2004.
 Growing market about 160 million people.

12. Present condition of some important sector
Economic status
1.stable,manageable fiscal
deficit.
2.steady export growth.
Investment status
1.Low rate of inflation
compared to neighboring
(5%)
Political status
1.Aid declined
2.Free trade policy

13. Mohammad Mohoshin Kabir
ID no: 13132610
Mohammad Mohoshin Kabir
ID no: 13132610
Presentation on:
Total Foreign Direct Investment
Inflows in Bangladesh
Presentation on:
Total Foreign Direct Investment
Inflows in Bangladesh

14. Total Foreign Direct Investment Inflows in Bangladesh

15. Mahmuda Akter
ID no-13132602
Mahmuda Akter
ID no-13132602
Presentation on:
FDI Inflows(in million USD) in
Bangladesh from major
countries(2014-2015)
Presentation on:
FDI Inflows(in million USD) in
Bangladesh from major
countries(2014-2015)

16. FDI Inflows(in million USD) in Bangladesh from
major countries(2014-2015)

17. Aisha Siddiqua
ID no-13132643
Aisha Siddiqua
ID no-13132643
Presentation on:
Foreign Direct Investment inflow
by Components
Presentation on:
Foreign Direct Investment inflow
by Components

18. Foreign Direct Investment inflow by Components
•
Year Equity Capital Reinvestment
Earnings
Intra Company
Loans
Total Inflows
2006 503.65 264.74 24.9 798.29
2007 401.61 213.24 51.51 666.36
2008 809.25 245.73 31.33 1086.31
2009 218.55 364.94 116.47 699.96
2010 519.89 364.62 28.72 913.22
2011 560.16 355.25 104.75 1020.16
2012 632.06 386.33 89.84 1108.23
2013 665.17 189.88 91.13 946.18
2014 533.78 256.82 107.74 980.20
2015 785.82 339.97 80 1205.79

19. FDI Inflows by Components

20. Taslima Akter
ID no-13132610
Taslima Akter
ID no-13132610
Presentation on:
FDI Inflows by Different Sectors
Presentation on:
FDI Inflows by Different Sectors

21. SI Sectors Numbers of
Units
Investment in
USD million
Percentage of
Total
Investment
Employment
Opportunities
1 Agro Based 59 154.291 2.20 24434
2 Chemical 65 1985.938 27.3 6147
3 Engineering 57 38.963 0.56 4388
4 Food & Allied 13 19.112 0.27 1662
5 Glass &
Ceramics
3 8.188 0.12 328
6 Printing,
Publishing &
Packaging
7 2.269 0.03 325
7 Tannery &
Rubber Products
4 4.013 0.06 602
8 Textiles 115 221,259 3.16 84578
9 Services 91 4575.901 66.3 18758
10 Miscellaneous 7 2.834 0.04 735
Total 418 7012.678 100 141957
FDI Inflows by Different Sectors

23. Sagor Chowdhury
ID no: 13132635
Sagor Chowdhury
ID no: 13132635
Presentation on:
Factors affecting FDI climate in
Bangladesh
Presentation on:
Factors affecting FDI climate in
Bangladesh

24. Factors affecting FDI climate in Bangladesh
 Infrastructure:
Infrastructure refers to the quantity of physical infrastructure (such as power,
transport, and telecommunications). The better the infrastructure of the
host economy, the more attractive it is to foreign investors.
 Financial Infrastructure:
The private sector in Bangladesh gets reasonable access to finance. Between
July 2009 and June 2010 (FY2009-10), credit to the private sector
increased by 21.1. In FY2008-09 when credit to the private sector
increased by 14.6 percent. The CRR in the recent months – from 5.0% to
5.5% in May 2010 and again to 6.0% in December 2010.

25. Factors affecting FDI climate in Bangladesh
 Technological Infrastructure:
Technological progress plays an important role in economic growth, which
stimulates FDI. It includes more modest advances the implementation of
better business processes, involves the adaptation and adoption of new
technologies.
 International Integration:
International integration is another determinant associated with investment.
The low level of FDI incoming in Bangladesh indicates poor integration with
the global economy.

26. Momi Rahman
ID no: 13132650
Momi Rahman
ID no: 13132650
Presentation on:
Factors affecting FDI climate in
Bangladesh
Presentation on:
Factors affecting FDI climate in
Bangladesh

27. Factors affecting FDI climate in Bangladesh

28. Sheikh Jerin Akter Urmi
ID no-13132634
Sheikh Jerin Akter Urmi
ID no-13132634
Presentation on:
Foreign Direct Investment (FDI)
Variables
Presentation on:
Foreign Direct Investment (FDI)
Variables

29. Foreign Direct Investment (FDI)
Variables
Dependent Variables:
GDP
Export
Domestic Investment
Independent Variable:
FDI Inflow

30. Dependent Variables
* GDP
Gross domestic product (GDP) is the market value of all final goods
and services produced within a country in a given period of time.
There are many factors to accelerate GDP. It is assumed that the GDP
is influenced by FDI Inflow.
* Export
There are many factors that can affect export. It is assumed that FDI
Inflow is one of the prominent factors that influence the export.

31.  Domestic Investment:
There are many factors that can affect domestic investment. It is assumed that
FDI Inflow is one of the prominent factors that influence the domestic investment
through increasing competitiveness.
 Independent Variable:
FDI Inflow
FDI Inflow refers to the long-term investment in a foreign country. It consists of three
components:
1. Equity capital
2. Reinvested earnings and
3. Intra-company loans.

32. Sumon Miah
ID no-13132622
Sumon Miah
ID no-13132622
Presentation on:
Impact of FDI inflow
Presentation on:
Impact of FDI inflow

33. Impact of FDI inflow
Impact of FDI inflow define the relationship between FDI and economic
growth. The interest is to show the impact of FDI on economic growth, and
GDP growth has taken as a general measure of economic growth of an
economy.

34. Variables Entered/Removedb
Model Variables Entered Variables Removed Method
1 FDIa
. Enter
a. All requested variables entered.
b. Dependent Variable: GDP
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .337a
.114 -.182 2408.40877
a. Predictors: (Constant), FDI
The value of Correlation Coefficient (R) and Coefficient of Determination (R
square and Adjusted R square) of the model are shown in the Table. The values of
correlation coefficient is .337 and R square is .114. These show that the
independent variable has high degree of correlation with GDP.
Impact of FDI on GDP

35. .ANOVAb
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regressio
n
2230701.54
4
1
2230701.5
44
.385 .579a
Residual
1.740E7 3
5800432.8
19
Total 1.963E7 4
a. Predictors: (Constant), FDI
b. Dependent Variable: GDP
In the above table express that F value is significant at .579 level. This
indicates that variation of FDI inflow in the export is not significant.

36. Coefficientsa
Model
Unstandardized
Coefficients
Standardize
d
Coefficients
T Sig.B Std. Error Beta
1 (Constant) 21563.991 12103.354 1.782 .173
FDI 7.106 11.458 .337 .620 .579
a. Dependent Variable: GDP
In the above table shows regression coefficients that are obtained from the
regression. So the independent variable FDI Inflow has expose significant
influence on investment.
So, FDI Inflow is found that positive and significant relationship with
investment.