Impact of FDI and Joint Venture on Employment Generation: A Multi-sector Experience of Bangladesh Economy

Abstract

Foreign Direct Investment (FDI) is very crucial for the sustainable development of developing countries in general and in specific for LDCs-like Bangladesh. For Bangladesh, inflow of foreign direct investment is the major stimulus for the sturdy and long-standing economic growth which is subject to the improvement of many socio-economic and political factors. As a promising hub for foreign direct investment, Bangladesh has already conquered popularity for its simplistic, liberal and most investments friendly climate throughout the globe. Being an open, flexible and promising destination for foreign direct investment, Bangladesh has been drawing attention of the global investors into a focal investment destination within South-Asian region. Its investment climate is mostly featured by munificent and alluring packages of incentives to investors. In addition, there is no discrimination between the local and foreign investors in facilitating the incentives they owe from the investment destination. The existing rules and regulations are structured in such a way so as to fully guarantee the safety of the incoming investment and their returns with gained profit or surplus. The positive and ensuring economic growth brings dramatic changes in the employment scenario of a country. The increased flow of foreign direct investment into multifarious sectors namely Agricultural, Chemical, Engineering, Textile and Service sectors significantly trims down the unemployment predicament of our country. Bangladesh has a large pool of vibrant young working force that is highly trained and skilled enough to cater the demands of the globalized world. Due to global economic recession of 2008, the financial markets were crashed jobs disappeared and growth took a sharp plunge in much of the developed world and its ripple effects were felt in the other parts of the globe. Though, many economists forecasted that Bangladesh would be severely affected by this speedy storm. Rather, the economy Bangladesh demonstrated extraordinary resilience, driven by sound macroeconomic policies, dynamic pool of private entrepreneurs and productive labour force. New and dynamic opportunities are emerging for foreign direct investment (FDl) in the traditional and emerging sectors while significantly improving involvement of female into the workforce.

Keywords: FDI, Joint Venture Investment, Sectoral Investment, Employment Generation.