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c word could be the mature leadership and political stability in Bangladesh that can trigger healthy and sustainable economic growth/ development for the country.

Rieta Rahman

10. Foreign direct Investment (FDI) is dramatically increasing in this age of globalization. AS it is viewed as a major stimulus to economic growth in developing countries. The climate for investment and the privatized enabling environment attract Foreign Direct Investment in Bangladesh is historically a reputed investment area where British companies dominated two hundred years. After getting freedom in 197, Bangladesh started to have nationalization process. But afterwards, it has been realized to show the attitude towards privatization to catch to catch up globalization process. Although Bangladesh economy is not matured enough to participate global process to get benefits to a large extent, that's why the economy is facing threats. But in order to catch up the things that are inevitable for Bangladesh in its global age of market economy,

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privatization can give a way and multinational should be invited to enhance the growth process refraining from the threaten situation from the effects of globalization. As the growing economy in SAARC (South Asian Regional Cooperation), Bangladesh is offering friendlier business and investment regime to attract foreign investment . The determinants that can impact on the economy should be discussed here to clarify the sense that basically which factor and things deter the Foreign direct investment in Bangladesh.

Journal of Money, Investment and Banking-Issue 5 (2008)99

11. It has been recognized that an important source of funding the economic activities for faster growth is foreign investment. On the outset let me refer to some research studies which show that Bangladesh economy has the potential to grow by around 8.0percent per year during the coming years, for which at least 20 percent investment rate is needed. since our saving investment gap is very wide, domestic savings can not meet the requirement. We have changed our trade policy from an inward looking import substitution policy to export led growth. Despite notable diversification and achievements, our exports are limited to a few commodities and destinations of exports are confined to only a few countries.

Remittances by the Bangladeshi workers have played a significant role in bridging the gap of savings and investment. we have to see how these funds are utilized in productive sectors and not fully spent in consumption and speculative purposes. While

recognizing the contribution of foreign aid to meet our resource requirements, we have to reduce our dependence on it.

Dr. Salehuddin Ahmed

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Analysis of the topic

Events that occur within the financial system are central to understanding developments in the overall economy. As we have just seen the institutions that make up this system- the bond market, the stock market, banks and mutual funds have the role of coordinating the economy's saving and investment. And as we saw saving and investment are important determinants of long run growth in GDP and living standards. As a result macroeconomists need to understand how financial market works and how various events and policies affect them.

Some important ident