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Presentation Topic
An Analysis of FDI
Inflow &
It’s impact of the
Bangladesh Economy
Group Members are:
ID Name
1337BBA02671 Lia Borsha Gomes
1337BBA02719 Sumaiya Monira
1337BBA02709 Fahmida Akter
1543BBA03599 Pronoti Rani Mondol
1543BBA03601 Chandana Rani Mondol
Lia Borsha Gomes
ID no:1337BBA02671
Lia Borsha Gomes
ID no:1337BBA02671
FDI, Key Economic
Indicators, Importance
FDI, Key Economic
Indicators, Importance
• FDI (Foreign Direct Investment)
– FDI occurs when a firm invests directly in
facilities to produce and/or market a product in
a foreign country.
Key Economic Indicators of
Bangladesh
 GDP size $223.941 billion (2016)
 Expected GDP Growth Rate- 7.10% ( 2016)
 Per Capital Income- $1466 (April, 2016)
 Inflation Rate- 5.6% ( 2016)
 Investment Contribution to GDP- 13% ( July
2015-May 2016)
 FDI- $1.53 billion (2015)
Indicators of Bangladesh
Cont…
Export- 192.41Billion BDT (February 2016)
Import- 239Billion BDT (February 2016)
Gold Reserves 13.78 tones
Remittance $1397.49 million
Foreign currency reserve over $24billion.
Why Bangladesh?
• Firms want a presence in foreign markets.
• Firms want control over growth of these
foreign markets
– To gain first mover advantages.
– To ward off competitors.
– And so on….
Sumaiya Monira
ID :1337BBA02719
Sumaiya Monira
ID :1337BBA02719
Total Foreign Direct
Investment Inflows in
Bangladesh
Total Foreign Direct
Investment Inflows in
Bangladesh
GDP and GNI related data of
last five fiscal years
GDP data 2006-07 2007-08 2008-09 2009-10 2010-11
(p*)
GDP (bn taka) 4,724.77 5,458.22 6,147.95 6,943.20 7875.00
GNI* (bn taka) 5,077.52 5,942.12 6,706.96 7,589.28 8528.22
Per capita GDP
(in taka)
33607 38330 42628 47536 53236
Per capita GNI
(in taka)
36116 41728 46504 51959 57652
Per capita GDP
(in US$)
487 559 620 687 755
Per capita GNI
(in US$)
523 608 676 751 818
Table 1: GDP & GNI data of last five fiscal years.
*P=provisional
GNI=Gross National Income
[Source: Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance.]
Mid-term Macroeconomic
forecast 2011-2015
Real sector Projection
2011-12 2012-13 2013-14 2014-15
GDP at current price (bn US$) 128.03 145.35 165.31 187.55
GDP growth at current price (%) 13.2 13.5 13.7 13.5
GDP growth at constant price (%) 7.2 7.6 8.0 8.0
Inflation (%) 6.3 6.1 6.0 6.0
GDP deflator (%) 5.6 5.5 5.3 5.0
Total investment (% GDP) 28.4 30.0 31.6 32.0
Line charts showing
projected GDP at current
price comparisons over
years.
Fahmida Akter
ID:1337BBA02719
Fahmida Akter
ID:1337BBA02719
FDI Inflows
(in million $) in Bangladesh from
major countries & Inflows by
Components
FDI Inflows
(in million $) in Bangladesh from
major countries & Inflows by
Components
FDI Inflows(in million USD) in
Bangladesh from major countries
(2014-2015)
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
Pronoti Rani Mondol
ID: 1543BBA03599
Pronoti Rani Mondol
ID: 1543BBA03599
FDI Inflows by Different SectorsFDI Inflows by Different Sectors
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
Chandana Rani Mondol
ID: 1543BBA03601
Chandana Rani Mondol
ID: 1543BBA03601
Impact of FDI inflowImpact of FDI inflow
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.
FDI Inflow &  It’s impact of the  Bangladesh Economy
FDI Inflow &  It’s impact of the  Bangladesh Economy

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FDI Inflow & It’s impact of the Bangladesh Economy

  • 2. Presentation Topic An Analysis of FDI Inflow & It’s impact of the Bangladesh Economy
  • 3. Group Members are: ID Name 1337BBA02671 Lia Borsha Gomes 1337BBA02719 Sumaiya Monira 1337BBA02709 Fahmida Akter 1543BBA03599 Pronoti Rani Mondol 1543BBA03601 Chandana Rani Mondol
  • 4. Lia Borsha Gomes ID no:1337BBA02671 Lia Borsha Gomes ID no:1337BBA02671 FDI, Key Economic Indicators, Importance FDI, Key Economic Indicators, Importance
  • 5. • 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. Key Economic Indicators of Bangladesh  GDP size $223.941 billion (2016)  Expected GDP Growth Rate- 7.10% ( 2016)  Per Capital Income- $1466 (April, 2016)  Inflation Rate- 5.6% ( 2016)  Investment Contribution to GDP- 13% ( July 2015-May 2016)  FDI- $1.53 billion (2015)
  • 7. Indicators of Bangladesh Cont… Export- 192.41Billion BDT (February 2016) Import- 239Billion BDT (February 2016) Gold Reserves 13.78 tones Remittance $1397.49 million Foreign currency reserve over $24billion.
  • 8. Why Bangladesh? • Firms want a presence in foreign markets. • Firms want control over growth of these foreign markets – To gain first mover advantages. – To ward off competitors. – And so on….
  • 9. Sumaiya Monira ID :1337BBA02719 Sumaiya Monira ID :1337BBA02719 Total Foreign Direct Investment Inflows in Bangladesh Total Foreign Direct Investment Inflows in Bangladesh
  • 10. GDP and GNI related data of last five fiscal years GDP data 2006-07 2007-08 2008-09 2009-10 2010-11 (p*) GDP (bn taka) 4,724.77 5,458.22 6,147.95 6,943.20 7875.00 GNI* (bn taka) 5,077.52 5,942.12 6,706.96 7,589.28 8528.22 Per capita GDP (in taka) 33607 38330 42628 47536 53236 Per capita GNI (in taka) 36116 41728 46504 51959 57652 Per capita GDP (in US$) 487 559 620 687 755 Per capita GNI (in US$) 523 608 676 751 818 Table 1: GDP & GNI data of last five fiscal years. *P=provisional GNI=Gross National Income [Source: Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance.]
  • 11. Mid-term Macroeconomic forecast 2011-2015 Real sector Projection 2011-12 2012-13 2013-14 2014-15 GDP at current price (bn US$) 128.03 145.35 165.31 187.55 GDP growth at current price (%) 13.2 13.5 13.7 13.5 GDP growth at constant price (%) 7.2 7.6 8.0 8.0 Inflation (%) 6.3 6.1 6.0 6.0 GDP deflator (%) 5.6 5.5 5.3 5.0 Total investment (% GDP) 28.4 30.0 31.6 32.0
  • 12. Line charts showing projected GDP at current price comparisons over years.
  • 13. Fahmida Akter ID:1337BBA02719 Fahmida Akter ID:1337BBA02719 FDI Inflows (in million $) in Bangladesh from major countries & Inflows by Components FDI Inflows (in million $) in Bangladesh from major countries & Inflows by Components
  • 14. FDI Inflows(in million USD) in Bangladesh from major countries (2014-2015)
  • 15. 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
  • 16. Pronoti Rani Mondol ID: 1543BBA03599 Pronoti Rani Mondol ID: 1543BBA03599 FDI Inflows by Different SectorsFDI Inflows by Different Sectors
  • 17. 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
  • 18.
  • 19. Chandana Rani Mondol ID: 1543BBA03601 Chandana Rani Mondol ID: 1543BBA03601 Impact of FDI inflowImpact of FDI inflow
  • 20. 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.