Causal Relationship Between Foreign Direct Investment And Capital Flight: A Case Study of Bangladesh
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Date
2016-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Centre for Research on Islamic Management and Business
Abstract
The fundamental aim of this study is to investigate the relationship
between Foreign Direct Investment (FDI) and Capital Flight (KF)
of Bangladesh. To obtain the objective, this paper has conducted
statistical analyses and examined time series data over a period of
Forty one years from 1973 to 2014. Unit root test and Granger
causality test were exercised to measure the relationship between
independent variable (FDI) and dependent variable (KF). The
results found in this paper signify a positive correlation between FDI
and Capital Flight and may be a concern and significant for the
government of Bangladesh. The government might focus on required
reforms and policy implications to make foreign investment more
beneficial.
Description
Keywords
FDI,, Capital Flight, Unit Root Test, Causality Test
Citation
Vol. 4, No. 2, December 2016