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Investment Climate Factors with Reference to Firm Performance in Bangladesh: A Prospective Cohort Study
Abstract
A productive investment climate is key to the growth of any developing country. Given the limited literature and importance of economic zone in attracting FDI, this paper conducts a study on the Export Processing Zone to provide an insight into the investment climate factors and its association with firms' performance. A total of 30 firms were chosen from the garment industry, in particular from the EPZ of Bangladesh. Findings reveal that all six factors were considered as important indicators affecting investment climate of EPZ firms. Moreover, five factors were found to be significantly associated with the firm performance. An important implication of the findings is that government and garment associations can get an important insights into the factors that are critical to the investment climate and accordingly take necessary steps to arrange better utilities provide sound governance, improve credit facilities, ensure a favorable trade union together with other infrastructural facilities that require for creating better investment climate for both the EPZ and non-EPZ firms.
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