Report on Impact Foreign direct Investment, Total

government expenditure, Gross domestic Investment,

Inflation, Foreign Aid on GDP of Bangladesh

A report submitted in conformity with the requirements for the course of Statistics for Decision
Making with Lab in BBA Program

Submitted by
ID:024231000408-1202
ID:024231000408-1191
ID:024231000408-1185
ID:024231000408-1183
Section:64-C_2

Supervisor:
DR. Sayedul Anam
Associate Professor
Department of Business Administration
Daffodil International University

Department of Business Administration

Faculty of Business and Entrepreneurship
Daffodil International University
Savar, Dhaka-1342
15 May, 2024
Contents
Introduction...............................................................................................................................................2
Impact of a GDP on a Country:...............................................................................................................2
Economic Growth:.............................................................................................................................2
Government Revenue........................................................................................................................2
Investment:.........................................................................................................................................2
Standard of Living:............................................................................................................................2
Global Competitiveness:....................................................................................................................3
Condition of GDP in Bangladesh:............................................................................................................3
 Early Years (1971-1990s):...............................................................................................................3
 Strong Growth (1990s-2020s):........................................................................................................3
 Recent Trends (2020s):....................................................................................................................3
Impact of trade openness in Bangladesh:................................................................................................3
Positive Impacts:........................................................................................................................................3
Export Growth:........................................................................................................................................3
Economic Diversification:.......................................................................................................................3
Long-term Economic Growth:...............................................................................................................3
Condition of trade openness in Bangladesh:...........................................................................................3
Positive Impacts:................................................................................................................................3
Export Growth:........................................................................................................................................3
Job Creation:...........................................................................................................................................4
Poverty Reduction:..................................................................................................................................4
Overall Growth:.......................................................................................................................................4
Challenges and Considerations:.......................................................................................................4
Over-reliance on Garments..................................................................................................................4
Limited Diversification:........................................................................................................................4
Import Dependence:..............................................................................................................................4
Current Situation:.............................................................................................................................4
Diversifying exports:...............................................................................................................................4
Improving trade policies..........................................................................................................................4
Addressing infrastructure limitations:......................................................................................................4
Foreign direct Investment............................................................................................................................5
Bangladesh's Total Government Expenditure..............................................................................................6
Recent Figures:......................................................................................................................................6
Data Availability:...................................................................................................................................6
Understanding the Figures:..................................................................................................................7
Additional Resources:...........................................................................................................................7
Gross domestic Investment..........................................................................................................................7
Inflation...................................................................................................................................................8
Foreign Aid to Bangladesh........................................................................................................................10
Overall.......................................................................................................................................................12
Analysis of Economic Indicators in Bangladesh....................................................................................12
Conclusion.................................................................................................................................................14

Introduction
GDP stands for Gross Domestic Product. It's a measure of the total value of all goods and
services produced within a country's borders over a specific period, typically a year or a quarter.
In Bangladesh, GDP is calculated using the expenditure approach, which sums up consumption,
investment, government spending, and net exports (exports minus imports). It provides a
snapshot of the country's economic activity and overall economic health.

About Median Mean Standard Deviation Variance Skewness Kurtosis

These are all important concepts in statistics that describe different aspects of a data set. Here's a
breakdown of each with an example to illustrate:
Central Tendency:
Mean: This is the most common measure of "average" and is calculated by adding all the values
in a data set and dividing by the number of values. It's a good representative of the center of the
data if the data is symmetrical (like a bell curve).
Example: If you have exam scores of 70, 85, 90, 80, and 95, the mean score would be (70 + 85
+ 90 + 80 + 95) / 5 = 84.
Median: This is the "middle" value when the data is ordered from least to greatest. It's less
sensitive to outliers (extreme values) compared to the mean.
Example: Using the same exam scores (70, 85, 90, 80, 95), ordering them gives 70, 80, 85, 90,
95. The median score is 85.
Spread of Data:
Standard Deviation (SD): This measures how spread out the data is from the mean. A lower SD
indicates the data points are closer to the mean, while a higher SD indicates more variation. It's
calculated by finding the average squared distance of each data point from the mean, then taking
the square root of that value.
Example: Continuing with the exam scores, calculating the SD would involve finding the
squared deviations from the mean (84) for each score, averaging them, and then taking the
square root. The result tells you how much the scores typically deviate from the average score of
84.
Variance: This is simply the standard deviation squared. It represents the average squared
deviation from the mean, but it's less commonly used than SD because it's in squared units of the
data, which can be harder to interpret.
Example: Using the same data from the standard deviation example, the variance would be the
standard deviation squared. It tells you the average squared difference of the scores from the
mean score.
Shape of the Data:
Skewness: This measures the asymmetry of a data set. A zero skewness indicates a symmetrical
distribution (like a normal bell curve). A positive skew means the data has a "tail" leaning to the
right (more high values), and a negative skew means the tail leans to the left (more low values).
Example: Imagine income data in a country. If there are a few very high earners, the distribution
might be skewed right. Conversely, if there's a large population living in poverty, the distribution
might be skewed left.
Kurtosis: This describes the "peakedness" of a distribution compared to a normal curve. A high
kurtosis indicates a sharper peak with heavier tails (more outliers), and a low kurtosis indicates a
flatter peak with lighter tails (fewer outliers).
Example: Height data in a population might have a low kurtosis, as most people would fall
within a typical height range. Test scores with a lot of perfect scores or very low scores might
have a high kurtosis.
By understanding these concepts and calculating these values, you can gain valuable insights into
the characteristics of your data set.

Impact of a GDP on a Country:

The GDP of a country has a significant impact on its overall economic well-being and
development. It tells about the overall developments of a country. Here are some key impacts:

Economic Growth: A higher GDP typically indicates stronger economic growth, as it reflects
increased production and consumption of goods and services. This can lead to higher living
standards, increased employment opportunities, and reduced poverty.
Government Revenue: GDP influences government revenue through taxes. A higher GDP
generally means more taxable income, which can provide governments with more funds for
public services, infrastructure development, and social welfare programs.
Investment: Investors often use GDP as a measure of a country's economic health and potential
for returns. Higher GDP can attract more domestic and foreign investment, stimulating further
economic growth and development.
Standard of Living: GDP per capita, which is GDP divided by the population, is often used as
an indicator of a country's standard of living. Higher GDP per capita generally correlates with
better access to education, healthcare, and other essential services for the population.
Employment: GDP growth is associated with increased demand for labor, leading to more job
opportunities and reduced unemployment rates. However, the quality of employment (e.g.,
wages, job security) may vary depending on other factors such as the structure of the economy
and government policies.

Global Competitiveness: Countries with higher GDP often have greater influence in global
markets and politics. A strong economy can enhance a nation's competitiveness in international
trade and diplomacy.
Overall, GDP is a crucial metric for assessing and understanding the economic performance and
potential of a country, but it should be considered alongside other indicators to provide a
comprehensive view of economic well-being and development.

Condition of GDP in Bangladesh:

From 1971 to 2023 the condition of Bangladesh’s GDP is mixed and it has seen significant
growth since 1971. Here's a general breakdown:

 Early Years (1971-1990s): Following independence in 1971, Bangladesh's economy was

in a fragile state. However, the country gradually implemented reforms and started
experiencing growth.
 Strong Growth (1990s-2020s): Over the past few decades, Bangladesh's GDP has grown
at an impressive average rate of 6% annually. This period saw a significant reduction in
poverty, with millions lifted out of it. The garment industry played a major role in this
economic boom.
 Recent Trends (2020s): The global economic slowdown and the COVID-19 pandemic
have impacted Bangladesh's GDP growth. In 2023, the growth rate dropped to 5.8%,
lower than previous years.

Impact of trade openness in Bangladesh:

Trade openness has had a significant impact on Bangladesh’s economy, with both positive and
negative aspects:

Positive Impacts:
Export Growth: Since the 1990s, trade openness and FDI have been key accelerators of
Bangladesh’s growth, increasing the volume and value of exports.
Economic Diversification: Policy reforms, such as the creation of export processing zones, have
contributed to growth in per-capita income.
Long-term Economic Growth: Studies suggest that trade openness has a positive and
significant effect on economic growth in the long run.
Condition of trade openness in Bangladesh:
Trade openness has been a major contributor to Bangladesh's economic growth, particularly
since the 1990s. Here's a breakdown of the relationship:
Positive Impacts:
Export Growth: Trade openness facilitated a surge in exports, especially garments and
knitwear. This brought in foreign exchange and boosted economic activity.
Job Creation: The thriving export industry created millions of jobs, particularly for women in
the garment sector.
Poverty Reduction: As job opportunities increased and the economy grew, poverty rates
significantly declined.
Overall Growth: Trade openness is considered a key factor behind Bangladesh's impressive
economic growth in recent decades.
Challenges and Considerations:
Over-reliance on Garments: The heavy dependence on the garment industry makes Bangladesh
vulnerable to fluctuations in global demand.
Limited Diversification: The export basket needs diversification to reduce vulnerability and
promote growth in other sectors.
Import Dependence: Openness also leads to dependence on imports for raw materials and other
goods.
Current Situation:
Diversifying exports: Expanding beyond garments to include new products and markets.
Improving trade policies: Streamlining procedures to further encourage trade.
Addressing infrastructure limitations: Enhancing infrastructure to support efficient trade flows.
 500
400300
GDP(B)
200 100
0

1970 1980 1990 2000 2010 2020

Year

F-1: Bangladesh GDP Graph (in billion)

CONTENTS DETAILED
INFORMATION OF GDP
MEDIAN 47.365
MEAN 92.22192
STD. DEV. 115.32
VARIANCE 13298.69
SKEWNESS 1.817907
KURTOSIS 5.24117

Foreign direct Investment

Bangladesh has seen a gradual increase in Foreign Direct Investment (FDI) in recent years, but it
still remains a relatively low percentage of its GDP compared to other developing nations.
Here's a breakdown of FDI in Bangladesh:
Current Situation:
 FDI Inflows: According to the UNCTAD's World Investment Report 2023, Bangladesh
received an average of $2.92 billion annually in FDI between 2 thousand 17 and 2022. In
2022, FDI inflows reached $3.48 billion, a 20.2% increase from the previous year.
  FDI Stock: Despite the rise in inflows, the total stock of FDI in Bangladesh remains low.
As of 2022, it was estimated at $21.1 billion, representing only 4.6% of the country's
GDP.
Comparison with Peers:
 While Bangladesh's absolute FDI inflow figures are higher than some South Asian
nations, it lags behind when considering FDI as a percentage of GDP. For instance, Sri
Lanka and Maldives have a lower total FDI amount but a higher FDI-to-GDP ratio.
Reasons for Lower FDI:
 Infrastructure bottlenecks: Bangladesh's infrastructure, including transportation networks
and power supply, may not be as developed as some other countries, which can deter
investors.
 Bureaucratic hurdles: Complex regulations and bureaucratic procedures can make it
difficult for foreign businesses to set up operations in Bangladesh.
 Political instability: While Bangladesh has seen significant economic progress, potential
investors might perceive some level of political risk.
Government Initiatives:
The Bangladesh government is actively working to attract more FDI by:
 Improving infrastructure: Investments are being made in roads, railways, and power
generation to create a more attractive business environment.
 Streamlining regulations: The government is simplifying procedures for foreign
businesses to obtain licenses and permits.
 Establishing Special Economic Zones: These zones offer tax breaks and other incentives
to attract foreign investors in specific sectors.
Future Outlook:
With its large and young workforce, and growing domestic market, Bangladesh has the potential
to attract significantly more FDI in the coming years. The government's efforts to improve the
business environment will be crucial in achieving this goal.
 300
Foreign direct Investment(B)
100 0 200

1970 1980 1990 2000 2010 2020

Year

F-2: Bangladesh Foreign direct Investment (in billion)

Contents Detailed Information of

Foreign Direct Investment
Median 5.738819
Mean 67.28233
Std. Dev. 95.81305
Variance 9180.14
Skewness 1.194734
Kurtosis 3.025633

Bangladesh's Total Government Expenditure

Here's what I can tell you about Bangladesh's total government expenditure:
Recent Figures:
 Budgetary Targets: We can find figures from Bangladesh's Ministry of Finance budget
documents. For example, the revised budget for Fiscal Year (FY) 2020-21 set the total
expenditure target at Tk. 5,38,983 crore (approximately $64.7 billion), which was
17.46% of GDP.
Data Availability:
 Government Sources: The Ministry of Finance website and Bangladesh Bank reports
likely contain the most detailed data on government expenditure. These resources might
offer breakdowns by ministry, department, or spending category.
Understanding the Figures:
 Budget vs. Actual Expenditure: It's important to distinguish between budgeted and
actual expenditure. The budgeted amount is the planned spending for the year, while the
actual expenditure might be higher or lower.
 Fiscal Year: Bangladesh's fiscal year runs from July 1st to June 30th. Ensure the data
you're looking at corresponds to the specific fiscal year you're interested in.
Additional Resources:
 World Bank: The World Bank publishes data on government expenditure as a
percentage of GDP for Bangladesh.
 International Monetary Fund (IMF): The IMF also provides data and reports on
Bangladesh's government finances, including expenditure figures
15000
Total government expenditure(B)
5000 0 10000

1970 1980 1990 2000 2010 2020

Year

F-3: Bangladesh Total government expenditure (in billion)

Contents Detailed Information of

Total government
expenditure
Median 110.39
Mean 586.2546
 Std. Dev. 2294.799
Variance 5266104
Skewness 6.38648
Kurtosis 43.09155

Gross domestic Investment

 Data Availability: Most readily available sources like the Bangladesh Bureau of
Statistics (BBS) often present GDP data in nominal terms ( taka) without directly
providing the GDI percentage.
Solution: Calculating GDI percentage
1. Find Data:
o Look for resources providing both GDP and GDI data for Bangladesh, preferably
for the same year.
o Potential sources include:
 Bangladesh Bureau of Statistics (BBS) publications or website.
 World Bank data indicators for Bangladesh
https://data.worldbank.org/indicator/NE.GDI.TO.ZS?locations=BGD.
2. Calculate GDI percentage:
o Once you have both GDP and GDI figures (in taka) for the same year, use the
following formula:
3. GDI (% of GDP) = (GDI / GDP) * 100
o Example: If you find GDI data of Tk. 5,000 billion and GDP data of Tk. 40,000
billion for a specific year, then:
4. GDI (% of GDP) = (5,000 billion / 40,000 billion) * 100 = 12.5%
Additional Points:
 The GDI data you find might be based on current taka, which doesn't consider inflation.
This means the GDI percentage might not reflect the exact proportion of GDP invested.
 For a more precise picture of investment relative to GDP, you might need to find
inflation-adjusted data (constant taka) for both GDP and GDI.
By following these steps and consulting the mentioned resources, you should be able to calculate
the GDI percentage for Bangladesh.
 30
Gross domestic Investment(%)
10 15 5 20 25

1970 1980 1990 2000 2010 2020

Year

F-4: Bangladesh Gross domestic Investment(in billion)

Contents Detailed Information of

Gross domestic Investment
Median 22
Mean 20.84314
Std. Dev. 7.430673
Variance 55.2149
Skewness -.2711012
Kurtosis 2.123955

Inflation
Bangladesh experienced inflation in 2023, with the rate reaching around 9.02% compared to the
previous year. Here's a more detailed breakdown:

Inflation in 2023:
 Average Rate: According to sources like Statista and The Daily Star, the average
inflation rate in Bangladesh throughout 2023 was approximately 9.02% .
 Fluctuations: Inflation wasn't constant throughout the year. The Bangladesh Bureau of
Statistics (BBS) reported inflation consistently above 9% since March 2023, with a peak
of 9.93% in October .
Food vs. Non-Food Inflation:
 Higher Food Inflation: In 2023, food inflation was generally higher than non-food
inflation. For instance, The Daily Star reported food inflation reaching 12.56% in
October, the highest in at least a decade.
Reasons for Inflation:
 Global Factors: The rise in global commodity prices, especially after the Russia-Ukraine
war, impacted Bangladesh's import costs, contributing to inflation.
 Supply Chain Disruptions: Disruptions in global supply chains due to the pandemic
might have also played a role.
Current Situation (as of May 14, 2024):
 Limited Data Availability: It's difficult to provide the most recent inflation rate for 2024
since the BBS might not have published data yet. However, you can check their website
for updates.
 Potential Improvements: There are signs that inflation might be easing. Bangladesh
Bank reports indicate a decrease in inflation to 9.41% in December 2023 compared to the
previous month.
10
8
Inflation(%)
4
2 6

1970 1980 1990 2000 2010 2020

Year

F-5: Bangladesh Inflation (in billion)

Contents Detailed Information of

Bangladesh Inflation
Median 5.675
Mean 5.692222
 Std. Dev. 1.930455
Variance 3.726658
Skewness -.1898718
Kurtosis 2.798911

Foreign Aid to Bangladesh

Foreign aid has played a significant role in Bangladesh's development since its independence in
1971. Here's a breakdown of key aspects:
Sources of Foreign Aid:
 Bilateral Aid: Provided directly from one government to another. Major donors include
Japan, the United Kingdom, the United States, and Germany.
 Multilateral Aid: Channeled through international organizations like the World Bank,
Asian Development Bank (ADB), and United Nations Development Programme
(UNDP).
Types of Foreign Aid:
 Grants: Financial assistance that doesn't need to be repaid. Used for infrastructure
development, poverty reduction programs, and social welfare initiatives.
 Loans: Financial assistance that needs to be repaid with interest. Used for larger projects
like power plants or transportation networks.
Impact of Foreign Aid:
 Positive Contributions:
o Helped finance essential infrastructure projects like roads, bridges, and power
plants.
o Supported social programs in education, healthcare, and sanitation.
o Played a role in disaster relief and rehabilitation efforts.
 Challenges:
o Dependency on foreign aid can create sustainability concerns.
o Effectiveness depends on proper implementation and reducing corruption.
Current Scenario:
 Shifting Landscape: Bangladesh is experiencing economic growth, and the role of
foreign aid is gradually evolving.
 Focus on Private Investment: The government is increasingly focusing on attracting
private investment to complement foreign aid.
Resources for Further Information:
 Economic Relations Division (ERD), Bangladesh: https://erd.gov.bd/ (Provides data on
foreign aid to Bangladesh)
 OECD Development Assistance Committee (DAC):
https://www.oecd.org/dac/financing-sustainable-development/development-finance-data/
(Tracks official development assistance data)
 World Bank: [invalid URL removed] (Data on World Bank aid to Bangladesh)
Additional Points:
 It's important to consider the effectiveness of foreign aid projects and ensure they align
with Bangladesh's development goals.
 Transparency and accountability are crucial for maximizing the positive impact of
foreign aid.
By exploring these resources, you can gain a deeper understanding of foreign aid and its role in
Bangladesh's development journey.
4
3
Foreign Aid(B)
2
1
0

1970 1980 1990 2000 2010 2020

Year

F-6: Foreign Aid (in billion)

Contents Detailed Information of

Foreign Aid
Median 1.5475
Mean 1.566652
Std. Dev. .7279937
Variance .5299749
Skewness .9481883
Kurtosis 4.614097

Overall
Analysis of Economic Indicators in Bangladesh
This analysis examines the impact of several economic indicators on Bangladesh's GDP (Gross
Domestic Product). Here's a breakdown of each indicator and its potential relationship with
GDP:
  Foreign Direct Investment (FDI): A positive correlation is expected. FDI inflows bring
capital, technology, and expertise, which can boost productivity, create jobs, and
stimulate economic growth, ultimately contributing to higher GDP.
 Total Government Expenditure (G): The relationship can be complex. Government
spending on infrastructure, education, and healthcare can enhance economic productivity
and growth, leading to higher GDP. However, excessive spending can lead to deficits and
inflation, potentially hindering GDP growth.
 Gross Domestic Investment (GDI): This is positively correlated with GDP. Higher
investment in machinery, buildings, and other productive assets increases the economy's
productive capacity, leading to higher output and GDP growth.
 Inflation: A moderate level of inflation can encourage investment and economic activity.
However, high inflation erodes purchasing power, discourages investment, and disrupts
economic stability, ultimately hindering GDP growth.
 Foreign Aid: The impact can be mixed. Foreign aid can provide resources for
infrastructure development, social programs, and disaster relief, which can indirectly
contribute to GDP growth. However, dependence on aid can create disincentives for
domestic resource mobilization and long-term economic self-reliance.
Data Analysis Recommendations
To analyze these relationships effectively, you'll need time series data for Bangladesh on each
indicator (GDP, FDI, G, GDI, Inflation, Foreign Aid) for a reasonable period (e.g., 10-20 years).
Here are some analytical techniques you can employ:
 Time Series Graphs: Visualize the trends of each indicator over time to identify
potential patterns and relationships.
 Descriptive Statistics: Calculate measures like mean, median, standard deviation for
each indicator to understand their central tendencies and dispersion.
 Correlation Analysis: Measure the strength and direction of the linear relationship
between GDP and each indicator. A correlation coefficient close to 1 indicates a strong
positive correlation, while a value close to -1 indicates a strong negative correlation.
 Regression Analysis: This technique can be used to quantify the relationship between
GDP and the other variables. You can develop a regression model to estimate how
changes in these variables might impact GDP.
Considering the limitations:
 Correlation doesn't imply causation. Just because two variables move together doesn't
necessarily mean one causes the other. Other factors might influence both variables.
 Data quality: Ensure the data you use is reliable and from credible sources.
By employing these techniques and considering the limitations, you can gain valuable insights
into how these economic indicators influence Bangladesh's GDP and inform policymakers on
strategies to promote sustainable economic growth.
 15000
10000
5000
0

1970 1980 1990 2000 2010 2020

Year

GDP(B) Foreign direct Investment(B)

Total government expenditure(B) Gross domestic Investment(%)
Inflation(%) Foreign Aid(B)

F-7: Overall Situation (in billion)

Some Mejor Calculation of This Topic (Correlation Regression)

Regression and correlation are both statistical tools used to analyze the relationships
between variables, but they serve different purposes:
Correlation:
What it measures: Correlation measures the strength and direction of a linear
relationship between two continuous variables.
Output: It provides a correlation coefficient (r) which ranges from -1 to +1.
Positive correlation (0 < r < 1): as one variable increases, the other tends to increase as
well.
Negative correlation (-1 < r < 0): as one variable increases, the other tends to decrease.
Zero correlation (r = 0): no linear relationship between the variables.
Doesn't imply causation: Correlation only shows that two things change together, it
doesn't necessarily mean one causes the other. There might be a third unknown factor
influencing both variables.
Example: Imagine you have data on study hours (independent variable) and exam
scores (dependent variable) for a group of students. You calculate a correlation
coefficient of r = 0.7. This indicates a positive correlation, meaning there's a tendency
for students who study more to score higher on exams. However, correlation doesn't tell
you if studying causes higher scores. Maybe smarter students naturally study more and
also score higher.
Regression:
What it does: Regression goes beyond correlation by modeling the relationship
between a dependent variable (predicted variable) and one or more independent
variables (predictor variables). It creates an equation that can be used to predict the
value of the dependent variable based on the values of the independent variables.
Output: A regression line (for linear regression) or a more complex equation (for other
regression models) is produced. This equation allows you to estimate the expected
value of the dependent variable for a given set of independent variable values.
Example: Using the same study hours and exam score data, you can perform linear
regression. The resulting equation would represent a best-fit line showing the predicted
exam score for a given number of study hours. You could then use this equation to
estimate the score a student might get based on their study hours.
In essence, correlation tells you if there's a connection, while regression tries to quantify
that connection and use it for prediction.

Co-Relation
GDP 1.0000

Foreign direct 0.8729 1.0000

Investment(B)
Total government 0.9808 0.8401 1.0000
expenditure(B
Gross domestic 0.8274 0.004 0.7675 1.0000
Investment
Inflation 0.2947 0.4477 0.2183 0.1129 1.0000

Foreign Aid 0.8953 0.8280 0.9153 0.5822 0.3767 1.0000

Regration
SS DF MS

Model 95035.8753 5 19007.1751

Residual 1452.64193 24 60.526769
total 96488.5172 29 3327.19025

Number of obs 30
F(5,24) 314.03
Prob > F 0.0000
R-squared 0.9849
Abj R-squared 0.9818
Root MSE 7.7799
 GDP Coef STd, Err. t p>|t| 95% Conf Interval
Foreign -.0434914 .0424524 -1.02 0.316 -.1311087 .44126
Direct
Investment
TotalgovernmentexpenditureB .1784979 .0226305 7.89 0.000 .1317909 .2252049
GrossdomesticInvestment .7753395 4.06 0.000 1.545606 4.746025
3.145828
Inflation .9278778 3.18 0.004 1.038481 4..868572
2.953526
ForeignAidB 7.331359 7.91994 0.93 0.364 -9.014592 23.67731
_Cons -65.42715 24.39206 -2.68 0.013 -115.7699 -15.08442

Conclusion
Bangladesh's economic growth story has been remarkable, with significant progress made in
poverty reduction and development. Analyzing the interplay between various economic
indicators like Foreign Direct Investment, Government Expenditure, Investment, Inflation, and
Foreign Aid is crucial for understanding their influence on Bangladesh's GDP.
By employing time series analysis, correlation, and regression techniques, policymakers can gain
valuable insights into how these factors interact and contribute to economic growth. This
knowledge can guide the formulation of effective strategies to promote sustainable economic
development in Bangladesh.
However, it's important to remember that economic relationships are complex. While some of
these indicators likely have a positive correlation with GDP, others may have a more nuanced
influence. Furthermore, external factors like global economic fluctuations can also play a role.
Continuous monitoring and analysis of these economic indicators are essential for Bangladesh to
navigate future challenges and maintain its impressive economic trajectory.

Reference :
1. https://www.oecd.org/dac/financing-sustainable-development/development-finance-data/

2. https://data.worldbank.org/indicator/NE.GDI.TO.ZS?locations=BGD