This paper examines co-integration and the causal relationship between Foreign Direct Investment (FDI) and the economic output or Gross Domestic Product (GDP) in the both short and long run of Bangladesh, Pakistan and India over the period of 1972-2008. Three econometric models, viz. Augmented Dickey-Fuller (ADF) test, Engle-Granger two-step co-integration test, Vector error correction mechanism (VECM) have been used. This study also used Granger Causality (GC) to find the directional relationship between FDI and GDP. The results suggest that there is no co-integration between FDI and GDP in the both long and short run in Bangladesh and India. However, we find the co-integration between them in the both short and long run in Pakistan. Conversely, GC results suggest that there is no causality relationship between GDP and FDI for Bangladesh and one way or unidirectional relationship found for Pakistan and India, which means FDI caused economic output in Pakistan.

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This study aims to examine empirically whether financial development can promote economic growth in Bangladesh. It employs the Autoregressive Distributed Lag (ARDL) model and takes annual data from 1987 to 2019. This study confirms a cointegrating relationship between financial development and economic growth. The nature of this relationship is unidirectional, running from financial development to economic growth. The outcome of the study confirms that financial development, as proxied by private sector loans and broad money supply, augments economic growth in the long-run. As for the control variables, gross domestic savings show an insignificant impact on economic growth when private sector loans are proxied for financial development. However, it confirms a substantial impact on economic growth when broad money supply is proxied for financial development. More interestingly, trade openness, another control variable, suggests an adverse impact on economic growth in the long-run. However, it has a substantial positive influence on economic growth in the short-run. In the short-run, broad money supply at lag 2 and gross domestic savings significantly affect economic growth when broad money supply is proxied for financial development. The findings of this study advocate that a robust and dynamic financial structure in Bangladesh is a critical success factor for developing the country's economic growth.

Prior Bangladeshi studies on the relationship between credit risk management and the financial performance of listed banks suffered from a dynamic endogeneity bias, which led to misleading conclusions. As a result, this study examines the impact of credit risk management on the financial performance of banks listed on the Dhaka Stock Exchange for the period from 2011 to 2018. The equity multiplier ratio (EMR), capital adequacy ratio (CAR), non-performing loan (NPL) ratio, interest coverage ratio (ICR), and provision for credit losses to total credit (PCLTC) are proxies for credit risk management. The study characterizes banks' financial performance from three perspectives: bank management, as indicated by return on equity (ROE); the market, as indicated by Tobin's Q (TQ); and shareholder value, as indicated by economic value added (EVA-ln). The study sample comprises 29 of the 30 listed banks, and the two-step system generalized method of moments (GMM) model is used to test the hypotheses. This study finds mixed results, i.e., none of the credit risk variables used in this study, with the exception of ICR, affect the sampled banks' performance equally from each of the three perspectives. Particularly, the results show that ICR has a significant positive impact on all measures of banks' financial performance, whereas PCLTC has no impact on any measure of financial performance. The EMR has a significant positive impact on ROE but does not affect TQ and EVA-ln. CAR has been shown to improve ROE and TQ while having an insignificant effect on EVA-ln. The NPL ratio has a negative effect on ROE but does not affect TQ and EVA-ln.

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