Electricity Generation, Output, Trade Openness & Foreign Direct Investment nexus in Bangladesh: An Empirical Analysis

As the world is becoming more of a global village, Bangladesh is also
having its fair share of growth through technological advancement,
development in energy sector, open economy and thus attracting foreign
investors in the process. A close observation may reveal a causal
relationship between electricity generation, trade openness, Foreign
Direct Investment and output, though no attempt has been made to
explore such nexus in Bangladesh. Hence, this study aims to investigate
the existence and direction of causality among the variables electricity
generation, trade openness, Foreign Direct Investment and output in
Bangladesh over the period 1980-2013. The findings show a long run cointegrating
relationship among these variables. The inferences drawn
from the study imply adoption of energy growth policies as important
policy implication.

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