Factors of Foreign Direct Investment Inflows: A Study on Korean Investment in the EPZs of Bangladesh

Abstract

This paper tries to explore the factors that influence foreign direct investment in the EPZs of Bangladesh. The researchers have collected data from a sample of 40 foreign companies that are functioning their factories in the EPZs of Bangladesh. Both primary and secondary data were used. Primary data were collected by interviewing the respondents using the structured questionnaire using the convenience sampling technique. Statistical Tools “Factor Analysis” (Principal Component Analysis and Confirmatory Factor Analysis) is used for data analysis. The result of the study is 12 constructs that influence the foreign direct investment in EPZs of Bangladesh. The findings of the present research will help the companies of the developed world to evaluate their investment strategies in Bangladesh. The results show some factors which can influence the FDI in EPZs of the country. The limitations of the study are the samples and the apathy of the respondents. The present research presents some modest suggestions for overcoming the hindrances and boosting the inflow of Korean investment in EPZs.