Effect of International Trade, Foreign Investment, Remittances, and Exchange Rate on the Economic Growth of Bangladesh

Abstract

Engagement in international trade and investment affects the attainment of macroeconomic objective of a nation. The purpose of this research was to assess the effect of international trade and investment on economic growth of Bangladesh measured by GDP, GDP growth, per capita income, unemployment rate, and capital investment. Type of data was secondary, and nature of data was time series. Study period was from 2000-2018. Ordinary least square regression has been applied to explore the impact. The study showed that exchange rate significantly positively impacts, but foreign remittances significantly negatively impact GDP, per capita income, and capital investment. GDP growth is significantly influenced only by exchange rate, and international trade and investment have an insignificant impact on unemployment. The findings of the study are beneficial for national economic and industrial policymakers, government, ministry of commerce and industry, and Bangladesh Bank as formulating appropriate policy regarding exchange rate and foreign remittance could contribute to Bangladesh's economic growth.