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close this bookDeveloping the non-farm Sector in Bangladesh: Lessons from other Asian Countries (WB, 1996, 116 p.)
View the document(introduction...)
View the documentForeword
View the documentAbstract
View the documentAcknowledgements
View the documentSummary
View the documentImperatives and models
View the documentMacroeconomic trends in Bangladesh
close this folderWhat drives growth?
View the document(introduction...)
View the documentGross domestic savings (GDS) (as a percentage of GDP).
View the documentGross domestic investment
View the documentForeign direct investment
View the documentPublic finances
View the documentHuman capital
View the documentHealth
View the documentMessage from indicators
close this folderPattern of development
View the document(introduction...)
View the documentHow does Bangladesh compare?
View the documentDevising a strategy for agricultural intensification
View the documentChoosing appropriate technologies
close this folderOther lessons from comparative experience
View the document(introduction...)
View the documentLesson 1: Take advantage of location
View the documentLesson 2: Promote exports
View the documentLesson 3: Develop infrastructure
View the documentLesson 4: Encourage local government entrepreneurship
View the documentLesson 5: Preparing for industrialization
close this folderRural industry in Bangladesh
View the document(introduction...)
View the documentRural infrastructure
View the documentMechanical and biochemical technology
View the documentNeighborhood effects
close this folderRural industry and export-led growth
View the document(introduction...)
View the documentPossibilities for foreign investment
View the documentDomestic hardles
View the documentFinancing of new enterprises
View the documentNiche exporting
View the documentGrowth poles
View the documentConcluding observations
View the documentTables and chards
View the documentBibliography

Foreign direct investment

FDI is both a source of capital and an index of a country's economic environment, as perceived by foreigners or nationals holding investable assets overseas. Of the countries in the sample, Bangladesh attracted the least amount of FDI as a percentage GDP in 1985 (0.008) and although the flow had risen in the early 1990s, it was still only a quarter of that of India-the next highest country on the list. Compared with Bangladesh's ratio of 0.04 in 1992, Sri Lanka had reached 1.2 and Malaysia 7.7 (table 7).

The picture looks a shade brighter when the focus shifts to aggregate net resource flows, which include development assistance and other grants. On average, Bangladesh has fared better than other highly populous countries during 1980-92. Its per capita flows of US $10.5 in 1985 and nearly US $15.0 in 1991 put it well ahead of China and India, and slightly higher than Pakistan. But, by 1992 both China and Pakistan had overtaken Bangladesh-Pakistan by a fairly wide margin following the surge in capital flows drawn by a widening of investment opportunities brought about by reform (table 8).