The relationship of employment in the agricultural sector to electric power consumption, government final consumption, and the democracy index in Bangladesh

Abstract

Agriculture stands as the cornerstone of Bangladesh’s rural economy, sustaining not only food production, but also serving as a primary source of employment for its rural populace. Modernising this sector holds the potential to bolster its expansion, and generate further employment opportunities, thereby fostering rural socio-economic development. The purpose of the study is to examine the impact of electric power consumption, government final consumption expenditure, and the democracy index on employment in the agricultural sector in Bangladesh. Employing a dynamic ARDL model, we examined the short and long run dynamics between agricultural employment and other independent variables, utilising data spanning the period from 1991 to 2022. The findings underscore the pivotal role played by electricity in the growth of employment in agriculture. The study illuminates the nuanced interplay between various factors, revealing that government expenditure positively influences the agricultural sector, while the democratic landscape exerts a negative influence. In light of these insights, the paper advocates for strategic policy measures, emphasising the critical need for the government to prioritise the development of the electric sector, recognising it as a linchpin for sustainable agricultural growth and overall socio-economic advancement. Simultaneously, the study highlights the imperative of fostering a conducive political environment, underscoring its direct correlation with positive changes in the agricultural sector. Through these concerted efforts, Bangladesh can pave the way for a more resilient and prosperous agricultural landscape, contributing significantly to its overarching socio-economic development.