Tag Archives: GCF


This paper endeavors to formally establish a link between public investment and economic growth. Public investment is one of the key factors of economic development. It is often seen as important ingredient for economic growth in developing countries like Bangladesh. The main purpose of the study is to investigate the impact of public investment on economic growth in Bangladesh. I also examine the public investment of Bangladesh. We consider ADP is the main proxy for public investment in Bangladesh. We also consider the gross capital formation for more reliable results. In our country, ADP traditionally holds the central place in our national economic planning. ADP regularly promotes economic growth, ensures infrastructural development, reduces poverty and improves the environment. The link among GDP, PI and GCF are analyzed by our regression model. From our study, we have seen that PI has positive effects on GDP in Bangladesh. So, in the light of that result, increases in public investment should have a positive net impact on economic growth which augments our economic development in future. This thesis concludes with a number of policy recommendations arising from the research findings.

Keywords: ADP, GCF, GDP, Public Investment, economic growth


Foreign Direct Investment (FDI) plays a crucial role in speeding up the development and economic growth of a country. In developing countries rely on FDI to promote their economy as they face capital shortage for their development process. The strong growth performances experienced by Pakistan economy greatly depends on the FDI. FDI generates economic growth by increasing capital formation through the expansion of production capacity, promotion of export and creation of employment in Pakistan. FDI inflows of Pakistan started fluctuating from 1990s to 2012 and this high volatility of Pakistan FDI inflows drew the researchers’ attention to examine the factors affecting FDI inflows in Pakistan by using the annual data from year 1988-2012. Multiple linear regressions model is applied to study the relationship between explanatory variables and explained variable. Empirical results show that gross capital formation, exports, gross national income, have significantly and positively affect Pakistan FDI inflows. Other than that, external debt also significantly affects Pakistan FDI inflows but its relation with FDI is negative. Imports of Pakistan are the final goods & its relationship with the FDI inflow in Pakistan is negative. It is significant affect on FDI in Pakistan. Due to the war conditions in Pakistan the military expenditures increases sharply which shows the foreign investors disinterest in Pakistan from last few years and our results also shows a significant and negative relationship between military expenditures and FDI inflow in Pakistan.