Keywords:
Related Articles:
Abstract
This article assesses the role of foreign capital in developing economies with a focus on Bangladesh. It evaluates FDI, portfolio flows, ODA, and remittances as key sources of external finance. The study highlights benefits such as technology transfer, infrastructure financing, and employment creation, while cautioning against dependency, profit repatriation, and vulnerability to external shocks. The research reviews policy frameworks including liberalization, investment treaties, and financial regulation. Comparative insights are drawn from East Asian and Latin American experiences. The paper concludes that foreign capital can accelerate growth if carefully managed, embedded in domestic capacity-building, and complemented by robust regulatory institutions.
Full Text
The body introduces the macroeconomic context of external financing in the 2000s. Section One reviews types of foreign capital: FDI, equity flows, debt, and aid. Section Two analyses positive impacts: job creation, technology transfer, and export competitiveness. Section Three critiques risks: currency volatility, capital flight, and crowding out of domestic enterprise. Section Four compares global cases: successful integration in East Asia, debt crises in Latin America, and policy lessons. Section Five outlines policy options: investment promotion agencies, prudent capital controls, and safeguards for environmental and labor standards. The conclusion emphasises the balance between openness and resilience, advocating for a strategy that aligns foreign capital with national development goals.