Journal of Commerce and Accounting Research

Zahidur Rahman ¹, Jannatul Ferdous Bristy ¹

Affiliations
1 Business Administration Discipline, Khulna University, Khulna, BD

Abstract

In the endeavour of conquering the world's consumers, multinational companies face enormous risks. Such risks may arise from different political, economic, and financial factors. These factors are commonly referred to country risk as a whole. Focusing Bangladesh in this regard, objective of this study is to find out the level of country risk in terms of political, economic, and financial riskiness. Analysis of country risk has been done using an internationally recognised methodology named International Country Risk Guide (ICRG). For political risk analysis, primary data has been collected from 20 journalists, bureaucrats and policy makers, business persons, corporate professionals, and academicians with a structured closed-ended questionnaire. Results indicate that Bangladesh is in high risk position in terms of political risk, low risk position in terms of economic risk and very low risk position in terms of financial risk. Compositely, Bangladesh has been found to be a moderately risky country for investment.

Keywords

Country Risk, Economic, Financial, Political, ICRG.

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Tarun Kanti Bose ¹, Sal Sabil Islam ¹, Rashadur Rahman ², Jannatul Ferdous Bristy ³

Affiliations
1 Business Administration Discipline, Khulna University, Khulna, BD
2 Department of Economics, Jatiya Kabi Kazi Nazrul Islam University, BD
3 Human Resource Management Discipline, Khulna University, Khulna, BD

Abstract

Although the research on vibrant and multidimensional impact of foreign direct investment (FDI) on economic growth is not scarce but its impact on least developed countries (LDC) and emerging economies remains a popular topic. This is mainly because of the diversified nature of these economies. The present study aimed at investigating the impact of FDI on growth from the context of LDC and emerging economies on the basis of the result of Bangladesh. In doing so it has analysed the trend of FDI inflows during the period of 1996-2013 and quantifying the impact of FDI on GDP, Export and Gross domestic investment. The result shows that amount of FDI inflow is following an increasing trend where investment on manufacturing sector is flourishing in the recent past. The impact analysis is made through conducting three simple linear regression models where the result shows that FDI has positive as well as significant impact on GDP, export and gross domestic investment. Due to 1 dollar increase in FDI inflow, GDP is increased by 68.51 dollars whereas in case of export, it is increased by 19.49 dollars and gross domestic investment is increased by 19.60 dollars.

Keywords

FDI Inflow Trend, GDP, Export, Gross Domestic Investment.

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Jannatul Ferdous Bristy ¹

Affiliations
1 Human Resource Management Discipline, Khulna University, Khulna, BD

Abstract

The present study has attempted to identify the factors affecting the determination of exchange rate in Bangladesh by taking into account the values of BDT in terms of US dollar. Sixteen macroeconomic variables have been selected to test their impact on exchange rate of BDT. Covering a period of 15 years from 1999 to 2013 and using correlation and simple least square regression methods, this study has found that government expenditure is the most important factor in the determination of the exchange rate. Among the other factors, broad money supply, gross capital formation, primary income payments, gross domestic product, external debt stock, and gross national income are also important. On the other hand, total reserve, current account balance and deposit rate are of moderate importance. Again, inflation, lending rate, net financial account, net capital account, foreign direct investment, and primary income receipts are among the least important factors. It has also been found that increase in lending rate and primary income receipts is expected to cause appreciation of BDT and increases in all other factors are expected to cause the depreciation of BDT in relation to US dollar.

Keywords

Determinants, Exchange Rate, BDT, US Dollar.

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Tarun Kanti Bose ¹, Jannatul Ferdous Bristy ²

Affiliations
1 Professor, Business Administration Discipline, Khulna University, Khulna, BD
2 Assistant Professor, Human Resource Management Discipline, Khulna University, Khulna, Bangladesh and Doctoral Researcher, Adam Smith Business School, University of Glasgow, GB

Abstract

This paper investigates the hypothesis that there is an association between increased levels of trade liberalisation and economic growth through a comparative analysis of two giant emerging economies of the world – India and China. For this purpose the paper examines trends in GDP growth and various trade openness measures via empirical analysis of time-series data of the last 43 years, based on eight key indicators to compare the experiences of the two countries. These indicate that rapid and gradual trade liberalisation of both the countries, coupled with supporting economic, institutional, and infrastructural reforms, and advancement in technology led to the linking of these giants with the global markets, which has significantly contributed towards their economic growth, thereby supporting the phenomena that there is a significant positive relationship between liberalisation and economic growth. While China was seen to be experiencing growth, India was also on the right track. Indicators of both liberalisation and growth reveal that both the countries enhanced their economy significantly as they embraced international trade through trade reforms and economic liberalisation.

Keywords

Trade Liberalisation, Economic Growth, India, China

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