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> National income accounting identities reveal some important relationships among macro economic variables. In particular, for a closed economy national saving must equal investment . Financial institutions are the mechanism through which the economy matches one person's saving with another person's investment. National saving equals private saving plus public saving. A government budget deficit represents negative public saving and therefore reduces national saving and the supply of lon able funds available to finance investment, it reduces the growth of productively and GDP.

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Foreign direct investment (FDI) pivotal in providing Bangladesh the necessary finance and capital to achieve sub stainable growth as well as poverty alleviation. Inflows have been able to increase GDP by raising the economy's output capacity and employment level. At the same time, it has also contributed in improving per capital income level. Overall, FDI can provide the necessary support for Bangladesh to progress further and realize higher growth levels by utilizing all its resources to their fullest potential. We must recognize the major problems that an investor faces while investing in Bangladesh and find ways to solve them. The major problems are:

(a) political instability and policy discontinuity.

(b) Lengthy and time consuming procedures of the government and para -statal agencies.

(c) Corruption.

(d) Underdeveloped infrastructure.

(e) Lack of adequate institutional capacity.

The investment climate of Bangladesh is reasonably good. In last fifteen years there were radical changes in the country. Foreign investment is actively encouraged and promoted in Bangladesh with the Bangladesh govt. Implementing a number of market oriented proactive investment policies .Incentives being offered to investors are , in addition to some already mentioned , duty free imports for 100 percent exporters , and tax exemptions on technology remittance fees , on interest on foreign loans and on capital gains by port folio investor.

Policy Recommendation

Remittance by the Bangladeshi workers have played a significant role in bridging the gap of saving 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 requirement we have to reduce our dependence on it. We can increase the investment of various sectors if remittance come in our country through proper channel. Then the investment will increase rapidly. Because of weak online banking system, Bangladeshi workers discourage to send and invest their money. So online banking should be developed and make easier to increase remittance. By establishing a specialized bank for the workers to increase the flow of their currency and make it secured.

We have not a good number of investment sectors for Bangladeshi workers. that is why they invest in the landing sectors. Since people are investing in the landing sectors price of land is going up. Ultimately it does not help our country, because investment condition remains the same. So govt. should make proper investment climate and increase investment sectors for the Bangladeshi workers.

Conclusion

A nation’s saving and investment a