Impediments of financing and impact of domestic and foreign financing on economic growth in Bangladesh

Abstract

The main objective of the study is to analyze a significant impact of financing on economic growth in Bangladesh. Besides, study has identified the impediment of financing on borrower perspective. From the data of last twenty years (FY 1999-2018), we have found that there is a significant gap between domestic financing and net foreign financing to contributions of economic growth in Bangladesh. To conduct quantitative analysis, we have used Correlation, regression, test of hypothesis and descriptive analysis in the paper. Primary and secondary data has been used in this paper. Primary data has been collected through structure questionnaires format from borrowers, investor, and businessmen. Secondary data has been collected from some economic reviews and journals. The results suggest that, if the government can overcome impediments of financing and make balance both the sources of financing, which will help more significantly in achieving targeted GDP in Bangladesh. The study will make available to the policy makers that how overcome the impediments of financing and which financing is more emphasis for achieving targeted level of GDP. At the end, have given some recommendations regarding overcome the impediments of financing and how to make the financing balance between the domestic financing and foreign financing to drive the economic growth by accelerating investment