Economic and non-economic determinants of economic growth in Bangladesh: multivariate regression analysis
Article Sidebar
Main Article Content
Abstract
This study focuses on the scenario of the economic development of Bangladesh. The major objective of the study is to examine the economic and non-economic determinants of the economic growth of the country. This study employs the Multivariate OLS regression and GLM technique to explore the influences of those variables to the economic growth and development of the country. The empirical results show that agriculture, industry, and service sector contribution to real GDP are positive where industry and service sectors are statistically significant. The results of the economic determinant model illustrate that the capital, labor forces, imports, and total reserve of the country positively influence the economic development of the country which are significant also. The OLS estimation shows that coefficients of non-economic determinants such as control of corruption and bureaucratic quality are positively significant to influence the economy. The results also present that internal conflict, democratic accountability, and rule and order situation negatively affect the economic growth in Bangladesh. The GLM estimation shows the control of corruption, rule, and order also a positive effect on economic growth. These empirical findings are consistent with the exploratory analysis and practices.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
Acs, Z. J., Estrin, S., Mickiewicz, T., & Szerb, L. (2018). Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective. Small Business Economics, 51(2), 501-514.
Ahmed, H. A., & Uddin, M. G. S. (2009). Export, imports, remittance and growth in Bangladesh: An empirical analysis. Trade and Development Review, 2(2), 79-92.
Ahmed, S. (2014). Searching for sources of growth in Bangladesh. Bangladesh Economists Forum (21-22).
Ain o Salish Kendra (ASK) (2016). A Legal Aid and Human Rights organization. Dhaka, Bangladesh.
Ali, A., & Saif, S. (2017). Determinants of Economic Growth in Pakistan: A Time Series Analysis. European Online Journal of Natural and Social Sciences, 6(4), 686-700.
Alam, G. M., Hoque, K. E., Khalifa, M. T. B., Siraj, S. B., & Ghani, M. F. B. A. (2009). The role of agriculture education and training on agriculture economics and national development of Bangladesh. African Journal of Agricultural Research, 4(12), 1334-1350.
Aziz, M. N., & Hossain, M. A. (2012). Extrinsic Determinants of Economic Growth. Bangladesh Journal of Political Economy, https://bea-bd.org/site/images/pdf/18.pdf
Bangladesh Bank (2019a). Economic Trends, Department of Statistics, Dhaka, Bangladesh.
Bangladesh Bank (2019b). Foreign Direct Investment in Bangladesh. Survey Report, Dhaka: Bangladesh Bank.
Bangladesh Bank (2019c). Vibrant Bangladesh: A Stable and Potential Economy. Dhaka: Bangladesh Bank.
Bangladesh Bureau of Statistics (2008). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2009). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2010). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2011). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2012). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2013). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2015). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2016). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2017). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2018). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Bureau of Statistics (2019). Statistical Year Book of Bangladesh. Dhaka.
Bangladesh Economic Review (2014). Dhaka: Finance Division, Ministry of Finance, Government of The People‘s, The Republic of Bangladesh.
Bangladesh Economic Review (2015). Dhaka: Finance Division, Ministry of Finance, Government of The People‘s, The Republic of Bangladesh.
Bangladesh Economic Review (2016). Dhaka: Finance Division, Ministry of Finance, Government of The People‘s, The Republic of Bangladesh.
Bangladesh Economic Review (2017). Dhaka: Finance Division, Ministry of Finance, Government of The People‘s, The Republic of Bangladesh.
Bangladesh Economic Review (2018). Dhaka: Finance Division, Ministry of Finance, Government of The People‘s, The Republic of Bangladesh.
Barro, R. J. (1991). Economic Growth in a Cross-Section of Countries. Quarterly Journal of Economics, 106(2), 407-443.
Barro, R., & Sala-i-Martin, X. (1995). Economic Growth. New York, McGraw-Hill.
Bhattacharya, D., and Chowdhury, T. A. (2003). Financial Sector Reforms in Bangladesh: The Next Round. Dhaka: Centre for Policy Dialogue (CPD).
Bhattacharya, D., Dasgupta, S., & Neethi, D. J. (2013). Does Democracy Economic growth? Exploring the Case of Bangladesh- A Cointegrated VAR Analysis. CPD‐CMI Working Paper 5, Dhaka, Bangladesh.
Boldeanu, F. T., & Constantinescu, L. (2015). The main determinants affecting economic growth. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 8(2), 329-338.
Easterly, W., & Levine R. (1997). Africa's Growth Tragedy: Policies and Ethnic Divisions. Quarterly Journal of Economics, 112(4), 1203-1250.
ESCAP. (2018). Statistical Yearbook for Asia and the Pacific 2013. United Nations.
Faaland, J., & Parkinson, J. R. (1976). Bangladesh: The Test Case of Development’ Boulder. CO: Westview Press.
Ferdousi, S., & Dehai, W. (2014). Economic growth, poverty, and inequality trend in Bangladesh. Asian Journal of Social sciences & Humanities, 3(1), 1-11.
Islam, R. (2014). Education and Economic Growth in Bangladesh-An Econometric Study. IOSR Journal of Humanities and Social Science, 19(2), 102-110.
Jahan, R. (2014). Political Parties in Bangladesh. CPD-CMI Working Paper 8, Dhaka, Bangladesh.
Kaufmann, D., Kraay, A., & Zoido-Lobaton, P. (1999). Governance Matters. World Bank, Working Paper No. 2196.
Kormendi, R., & Meguire, P. (1985). Macroeconomic Determinants of Growth: Cross-Country Evidence. Journal of Monetary Economics, 16(4), 141-63.
Li, S. (2005). Why a poor governance environment does not deter foreign direct investment: The case of China and its implications for investment protection. Business Horizons, 48, 297–302.
Majumder, S. C. (2016). Inflation and Its Impacts on Economic Growth in Bangladesh. American Journal of Marketing Research, 2(1), 17-26.
Majumder, S. C. (2019). Impacts of FDI Inflows on Domestic Investment, Trade, Education,
Labor Forces and Energy Consumption in Bangladesh. European Online Journal of Natural and Social Sciences, 8(2), 316-330.
Mankiw, N., Romer, D., & Weil, D. (1992). A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics, 107(2), 407-437.
Mujeri, K. M., & Chowdhury, T. T. (2013). Savings and Investment Estimates in Bangladesh: Some Issues and Perspectives in the Context of an Open Economy. Bangladesh Institute of Development Studies.
Nuruzzaman, M. (2004). Neoliberal economic reforms, the rich and the poor in Bangladesh. Journal of Contemporary Asia, 34(1), 33-54.
Paci, P., & Sasin, M. (2008). Making Work Pay in Bangladesh: Employment, Growth, and Poverty Reduction. The International Bank for Reconstruction and Development, World Bank.
Pegkas, P. (2018). The effect of government debt and other determinants on economic growth: The Greek experience. Economies, 6(1), 10.
Podrecca, E., & Carmeci, G. (2001). Fixed Investment and Economic Growth: New Results on Causality. Applied Economics, 33, 177-182.
Próchniak, M. (2011). Determinants of economic growth in Central and Eastern Europe: the global crisis perspective. Post-communist economies, 23(4), 449-468.
Rahman, M. M. Rahman, M. S., & Hai-bing, W. U. (2011). Time series analysis of the causal relationship among GDP, agricultural, industrial and service sector growth in Bangladesh. China-USA Business Review, 10(1), 9-15.
Rahman, M., Khan, T. I., & Amin, M. I. (2014). How to Produce Socially Just, Sustainable and Green Dynamic Growth for a Good Society: Case Study of Bangladesh. The Economy of Tomorrow, Friedrich Ebert Stiftung.
Rao, B. B., & Hassan, G. (2011). Determinants of the long-run growth rate of Bangladesh. Applied Economics Letters, 18(7), 655-658.
Roy, M., & Borsha, F. H. (2013). Hartal: A Violent Challenge to the Socio-Economic Development of Bangladesh. International Journal of Scientific & Technology Research, 2(8), 86 – 97.
Shahbaz, M., Ahmad, K., & Chaudhary, A. R. (2008). Economic growth and its determinants in Pakistan. The Pakistan Development Review, 47(4-II), 471-486.
Sala-i-Martin, X. (1997). I Just Ran Two Million Regressions. American Economic Review, Papers and Proceedings, 87(2), 178-183.
Schwab, K. Ed, (2015). Global Competitiveness Report 2015–2016. Geneva: World Economic Forum, World Bank.
Sharma, H. (2018). Determinants of economic growth in India. International Journal of Research in Economics and Social Sciences (IJRESS), 8(4), 28-38.
Sharma, R., Kautish, P., & Kumar, D. S. (2018). Impact of selected macroeconomic determinants on economic growth in India: An empirical study. Vision, 22(4), 405-415.
Shonchoy, A. S., & Tsubota, K. (2014). The economic impact of Political Protests (Strikes) on Firm: Evidence from Bangladesh. Working Paper of JETRO.
Son, H. H. (2010). Human Capital Development. ADB Economics Working Paper Series No. 225, Asian Development Bank.
Srinivasu, B., & Rao, S. (2013). Infrastructure Development and Economic Growth: Prospects and Perspectives. Journal of Business Management & Social Sciences Research (JBM&SSR), 2(1), 81 – 91.
Transparency International (TI). (2017). Transparency International Corruption Perceptions Index -2017. https://www.transparency.org/news/feature/corruption_perceptions_index_2017.
Wilson, D., & Stupnytska, A. (2007). The N-11: More Than an Acronym. Global Economic Paper No. 153.
World Bank. (2019). World Development Indicators. Washington D. C. World Bank.
World Bank. (2018). Logistic Performance Index: Connecting to Compete-2018. Washington D. C. World Bank.
World Economic Forum. (2018). Global Competitiveness Report 2018/19. Geneva.