Description

Infrastructure Development is undeniably linked to macroeconomic upward shifts and the progress of a country. Existing infrastructure not only aids in economic growth but also attracts foreign direct investments and foreign businesses to attractive countries. Evidence through research has found that developing nations of the South, especially Africa and South Asia, tend to rely on the developed countries of the Global North to fund their infrastructural projects through grants, loans and investments. Bangladesh, a country located in South Asia, has an immense potential for growth, development and investment. However, the country requires foreign investments to develop domestic infrastructure. But in comparison to its neighbours in the South and Southeast, the inward foreign investments are quite measly in nature, below 1% of the total GDP of Bangladesh. This study examines both the past and present conditions of foreign direct investments in the country, as well as the specific drivers behind them. The paper crucially focuses on the investment performances of specific countries, such as the US, UK, Japan, India and China. The study emphasises the importance of bilateral relations to improve infrastructure development through foreign investments. The study then highlights specific obstacles behind Bangladesh’s underwhelming inward investments. Lastly, the study presents policy recommendations to address bottlenecks in the way Bangladesh receives a larger, more resilient and sustainable influx of foreign direct investments.

Keywords: Foreign Direct Investment, Foreign Investment, Bangladesh, FDI, IFDI, Infrastructure, Infrastructure Development, US-Bangladesh, India-Bangladesh, China-Bangladesh, EU-Bangladesh, UK-Bangladesh, Japan-Bangladesh.