Analyzing How FDI and Globalization Shape Economic Growth in Bangladesh: an Empirical Investigation for Bangladesh

EasyChair Preprint 15475

Abstract

Significant changes in the economic landscape of Bangladesh have occurred in recent decades due
to variables such as globalization, urbanization, FDI, trade, population dynamics, and their
interplay. Effective policies and strategies must be developed with a thorough comprehension of
the interconnected dynamics of these factors and their influence on economic expansion. This
study investigates the dynamic linkages between globalization, urbanization, foreign direct
investment (FDI), trade, population, and economic growth in Bangladesh. The study employs
sophisticated econometric techniques to analyze the impact of these variables on the nation's
economic landscape from 1991 to 2021. The stability of the dataset is evaluated using stationarity
tests including ADF, DF-GLS, and P-P unit root tests. The results indicate a varied order of
integration estimation for the investigated variables, necessitating additional investigation. The
Autoregressive Distributed Lag (ARDL) estimation technique is utilized to investigate the long-
term relationship between the variables. The results demonstrate a positive and statistically
significant relationship between globalization, urbanization, trade, FDI, and economic growth. The
significance of external factors and urbanization in propelling Bangladesh's economic growth is
highlighted by these findings. Surprisingly, during the examined period, population dynamics had
no significant impact on economic growth.

Keyphrases: ARDL, FDI, Globalization

@booklet{EasyChair:15475,
  author    = {Ayodele Oluwaseun},
  title     = {Analyzing How FDI and Globalization Shape Economic Growth in Bangladesh: an Empirical Investigation for Bangladesh},
  howpublished = {EasyChair Preprint 15475},
  year      = {EasyChair, 2024}}