The impact of foreign direct investment inflows on the tax revenues in bangladesh

Authors

  • Subrata Deb Nath Department of Foreign Remittance, Local Office, Janata Bank Limited, Dhaka, Bangladesh
  • A. K. M. Firoz Alam Department of Foreign Remittance, Local Office, Janata Bank Limited, Dhaka, Bangladesh
  • Munna Rani Biswas Office of the Deputy Commissioner, Moulavi Bazar, Sylhet, Bangladesh

Keywords:

Bangladesh, FDI inflow, impact, tax revenue

Abstract

Purpose: Now-a-days, domestic capital alone is not enough for economic development of a developing country. Developing countries in fact, seek adequate Foreign Direct Investments always. Although indirect tax increases through FDI inflows, but direct tax does have a negative influence on FDI inflows. This research investigates the impact of FDI inflows on tax revenues in Bangladesh. Methodology: The study has been completed based on time series data for the period of 2001–2020, where we considered tax revenue as a dependent variable, and FDI inflow as an independent variable. We also used the simple regression analysis technique for analyzing our data. Findings: The results reveal that FDI inflows do have a positive influence on tax revenues, by which, we can affirm that one unit change in independent variable (FDI inflow) increases tax revenues in Bangladesh by 8.22 units. Implication: Policy makers, economists, and regulators like NBR along with new researchers shall get an important insight about the impact of FDI inflows on tax. Originality: There is hardly any study available on this subject in the context of Bangladesh. Thus, to the best of our knowledge, this is a pioneering attempt, aiming to analyze the impact of FDI inflows on the tax revenue in Bangladesh.

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Published

31-05-2022

How to Cite

Subrata Deb Nath, A. K. M. Firoz Alam, & Munna Rani Biswas. (2022). The impact of foreign direct investment inflows on the tax revenues in bangladesh. Indian Journal of Commerce and Management Studies, 13(02), 16–20. Retrieved from https://ijcms.in/index.php/ijcms/article/view/578

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