Economy Of Bangladesh Research Articles

Does the Foreign Direct Investment Enhance Bangladeshi Economy? An Empirical Study

Like most developing countries, Bangladesh considers foreign direct investment (FDI) as a critical element of economic development. Numerous studies showed that the FDI significantly impacts economic growth due to the technological transfer and innovative capability that enters the recipient country. On the other hand, some other studies did not find any significant impact of FDI on economic growth. The purpose of this study is to determine whether the FDI or other factors, including human capital, infrastructure, and trade openness, impact the economic growth in Bangladesh. Using an ordinary least square (OLS) regression model, 35-year time series data of the variables were analyzed to investigate the variables that impact economic growth in Bangladesh. The study results depict that FDI has no significant impact on the economy of Bangladesh. In contrast, human capital, infrastructure, and trade openness significantly influence the Bangladesh economy. The study findings are expected to benefit the researchers, government agencies, and the decision-makers of multinational companies.

Do technological innovation, foreign investment, trade and human capital have a symmetric effect on economic growth? Novel dynamic ARDL simulation study on Bangladesh

Bangladesh's economy has flourished a great deal during recent years, establishing itself as an enthralling market. This country's remarkable growth trajectory can be attributed to technological innovation, foreign direct investment, trade and human capital, all of which have significant impacts on its economic growth. Bangladesh's economic development has been poorly explored in previous studies due to the lack of integration between these dynamics. Does the question arise whether this growth factors have a symmetrical or non-symmetrical effect on Bangladesh's economic growth and policymaking? We conducted this study with the primary objective of evaluating how technological innovation, foreign direct investment, trade, and human capital affect Bangladesh's economic development. Based on time series data years spanning 1990 to 2020, this study used the dynamic ARDL simulation method to accomplish its objective. This novel approach allows users to examine possible counterfactual changes in variables based on the ceteris paribus theory, as well as to test cointegration, long- and short-run symmetric associations between variables. Research findings indicate that technological innovation and human capital have a long-run symmetric relationship with Bangladesh’s economic development. There is a significant correlation found between economic growth and all variables in the short run. To further check the robustness of the study we employed the nonlinear ARDL approach. Therefore, this study can undoubtedly be used by policymakers and the government as a basis for prioritizing and encouraging critical policy changes that will improve Bangladesh's economic development.

PROFITABILITY ANALYSIS OF BORO RICE FARMING: THE CASE OF NAOGAON DISTRICT OF BANGLADESH

Agriculture is one of the major sectors in the economy of Bangladesh, because of its contribution to Gross Domestic Product (GDP), employment, and its interconnection with other sectors of the economy. This study was conducted to examine the measurement of farm profitability in Boro rice cultivation in the Naogaon district of Bangladesh. A total of 45 farmers were selected randomly from 4 villages in Naogaon District. Data were collected through a well-structured questionnaire with a simple random sampling technique. Descriptive statistics, cost-benefit analysis, and Cobb-Douglas production function were used to analyze this study. The Ordinary Least Square (OLS) is applied to the data set of all farmers. Empirical results obtained from production function analysis considering hired labor, pesticides, planting, harvest and transport, and machinery costs positively affect Boro rice production while seed, fertilizer, plowing, and irrigation cost negatively affect Boro rice production. It is found that Boro rice cultivation is profitable in the study area. The average per bigha net return of Boro farming was Tk. 1694.11. The study also found some challenges to cultivate Boro rice in the study area. In the end, the study suggests some policies to enhance profitability in Boro rice cultivation in the Naogaon district and overcome the challenges

Green Solutions for Overcoming the Challenges Associated With the Green Economy in Bangladesh

Green Solutions for Overcoming the Challenges Associated With the Green Economy in Bangladesh

The Impact of Stock market on Economic Growth: Evidence of Bangladesh

The study investigates the impact of well-functioning stock market in Bangladesh economy (2003-2022). The research has taken account of secondary data and employed regression analysis to measure the intensity of possible influence that Dhaka stock market capitalization has on GDP. It has been demonstrated that the trends in stock market follow parallel momentum along with GDP. The genesis of a functional financial system resides in relevant capital markets that promotes and revitalizes platforms for smooth channeling of funds. A knowledge-based investment environment for investors would pursue higher efficiency and liquidity in the markets. The data collected for the study are analyzed quantitatively and significant statistical evidence have been found that the idea conforms to the analysis. Upper trend in stock market cap reflects inherent profitability and accessibility to resources of listed business companies hence, economic growth is enhanced.

Relative Impact of Fiscal and Monetary Policies on Bangladesh Economy: A Comprehensive Approach

For developing countries like Bangladesh, understanding the relative impact of monetary and fiscal policies on GDP growth is crucial to formulate growth-enhancing policy decisions. This paper inspects into the relative effectiveness of these two policies on the real GDP growth of Bangladesh using ARDL, VECM and VAR estimation techniques to ensure comprehensiveness. From the results of all the three estimation techniques, it is seen that in the long run only fiscal policy has positive influence on growth while monetary policy stays either statistically insignificant or negative. In the short run, however, the results from the different estimation techniques are not much consistent. Here, ARDL technique shows that both money supply and government expenditure has statistically significant and positive effect on GDP while VAR-based Variance decomposition (VDC) and Impulse Response Functions (IRFs) state that only government expenditure has positive impact in the short run. In contrast, VECM technique reveals that neither money supply nor government expenditure has statistically significant impact in the short run. As from the results, it is apparent that government expenditure helps generating growth in the long run, it should be raised which may necessitate raising more government revenue. And, the main goal of monetary policy should be ensuring stability of the economy.

The Perspective of Mobile Financial Services as a sustainable tool of Financial Inclusion to the economy of Bangladesh: An exploratory Study

In recent years, Mobile Financial Services (MFSs) and financial inclusion have been one of the most discussed issues in Bangladesh as well as all over the world especially in developing countries. People now doing their banking needs by using their mobile phone from anywhere any time. Bangladesh like many other countries, is being going through the transitional period of cashless country. Payments in all sectors like education, commerce, health care, household, utilities, agriculture, etc. through mobile phones has tremendously increased in recent years. Mobile financial services have been colouring the lives of poor, particularly underserved, unbanked, under banked people in several ways - starting from sending money and ending to receiving the money sittin-g at home- which save time and in terms save money contributing to the development of the economy. Financial inclusion is most important element to develop any economy especially for Bangladesh. Bangladesh has shown immense potential for financial inclusion through Mobile Financial Services. This study unravels the trends of mobile financial services for financial inclusion of the people of Bangladesh. This study also reveals the growth of Mobile Financial Service (MFS) providers in Bangladesh.In recent years, Mobile Financial Services (MFSs) and financial inclusion have been one of the most discussed issues in Bangladesh as well as all over the world especially in developing countries. People now doing their banking needs by using their mobile phone from anywhere any time. Bangladesh like many other countries, is being going through the transitional period of cashless country. Payments in all sectors like education, commerce, health care, household, utilities, agriculture, etc. through mobile phones has tremendously increased in recent years. Mobile financial services have been colouring the lives of poor, particularly underserved, unbanked, under banked people in several ways - starting from sending money and ending to receiving the money sittin-g at home- which save time and in terms save money contributing to the development of the economy. Financial inclusion is most important element to develop any economy especially for Bangladesh. Bangladesh has shown immense potential for financial inclusion through Mobile Financial Services. This study unravels the trends of mobile financial services for financial inclusion of the people of Bangladesh. This study also reveals the growth of Mobile Financial Service (MFS) providers in Bangladesh.

Disabled Entrepreneurship: Human Capital Transformation in the Context of Bangladesh

Disability directs the life of the sufferers to go through pitiful situation in every sphere of their lives. However, if proper supports could be made available for them, they can become successful in life and contribute to the overall economy of the country. From this viewpoint, this study has been prepared focusing on three objectives such as determining the status of the disabled entrepreneurs, identifying and evaluating factors that act as the success factors for them and proposing some policy implications for improving their situation. The study has followed mixed research methods for analyzing the survey results. Data collection has been done using in depth interview, focus group discussion and questionnaire survey. The study has showed the transformation of the disabled people into human capital for the country through identifying four success factor including personal factors, job factors, motivational factors and environmental factors that help them to get success. The study suggests some policies that can be implemented to improve the entrepreneurial performances of the disabled community. These policies will instigate the human capital transformation of the disabled people and will contribute to the inclusive development of Bangladesh economy.

The Role of Audio Visual Contents on the Economic Development of Bangladesh: A Systematic Review

Background: Information is defined as any written audio-visual contents that convey knowledge about a novel person, place, item, circumstance, or environment and communication is the act of transmitting a message to another person. To do so, a sender and a recipient are required as well as a medium, coherent message, and conversation. In this digital age, audio-visual digital contents are playing a significant role on the sustainable economic development of the world. Objectives: The aim of this current review article was to identify the role of audio visual contents on the economic development of Bangladesh. Methodology: An electronic literature search was conducted for the data databases of the study. The data of this study were retrieved from Scopus and Google scholar published from 2004 to 2022. The reference lists of all included studies and relevant systematic reviews were also evaluated to identify additional research. All searches were restricted to English-language and research on humans only. The PRISMA standards were followed to perform this systematic review. Results: Wider use of audio-visual contents can build-up technological knowledge, attitude and practice in cultivationamong the rural farmers. As a result, agricultural productivity is being improved. At the same time, Audio- visual digital contents are playing a potential role to promote teaching-learning process of Bangladesh and simultaneously which can strongly claim that audio-visual contents have a positive contribution to the promotion of GDP of Bangladesh economy. Conclusion :After reviewing the articles it was identified that there are certain role of audio visual contents in agricultural sector and increase knowledge, attitude and practice which has certain impact in other sector like health care, and education. Further project and study required to know the audio-visual concept in-depth contribution of the society. Keywords: Role, audio-visual contents, economic, development, Bangladesh. DOI: 10.7176/JESD/14-2-01 Publication date: January 31 st 2023

Nexus between macroeconomic factors and remittance inflow in presence of ICT penetration: a panel data analysis of Bangladesh economy

Nexus between macroeconomic factors and remittance inflow in presence of ICT penetration: a panel data analysis of Bangladesh economy

Trend of Gross Domestic Product and Per Capita Income of Bangladesh: Past, Present, and Future

Bangladesh's per capita income was half of that of India in 2007. Today, it has surpassed India. The Asian Development Bank has estimated that Bangladesh's GDP will grow at a rate of 6.6% hereafter. According to the 2022 Economic Freedom Index, Bangladesh's economy placed in the 137th position with a score of 52.7 in the World. In the Asia-Pacific region, Bangladesh ranked 29th position out of 39 countries. The resilience of COVID-19 impinged the average growth of the economy. International Monetary Fund (IMF) has envisaged that the World may experience a challenging recession-like situation in 2023. Hence, the present paper attempts to predict the economic condition of Bangladesh through its GDP and Per Capita Income. The study considers 51 years of GDP and Per Capita Income growth data. It has adapted the Trend Projection Method, a linear regression technique, and the Least Square method to analyze data to get the future trend. It has been found that GDP was grown at an average rate of 4.4% and Per capita income at an average rate of 1.8% since 1971. The study reveals that GDP and Per Capita Income may grow at 7% and above hereafter. Hence, appropriate strategies and economic policies of the Government of Bangladesh create a defendable position that safeguards the country's economic condition.

Current status and chronological development of fisheries and aquaculture in Bangladesh

While many parts of the world face water scarcity, Bangladesh is fortunate to have an abundance of the resource. The economic health of the country depends heavily on the fishing industry. Both capture fisheries and culture fisheries are common types of fisheries. Unlike culture fisheries, which is farming aquatic organisms in closed waters under controlled conditions, capture fisheries typically means harvesting fish and other aquatic organisms from open waters. This article examines Bangladesh's fisheries and aquaculture sectors using data from the Bangladesh Department of Fisheries and a few other relevant organizations and articles. Bangladesh is one of the world's major fish producers, with a total output of 4.62 million metric tons (MT) in the fiscal year 2020-2021. The majority (57.10%) of the country's fish and shrimp come from aquaculture, while 28.16 and 14.74 percent come from inland capture and marine capture, respectively. Bangladesh ranks only fifth in aquaculture production and third in inland open-water capture production whereas it stands first in hilsa production in the world. One of the most productive fish species is the major carp. There has been a modest increase in the country's inland aquaculture output over the past few decades, but the country also gets fish from inland capture and marine fisheries. The most recent ten years have seen significant contributions to inland capture fisheries and inland aquaculture from floodplains and ponds, respectively. The most common fisheries exports are frozen raw shrimp in blocks, individually quick frozen (IQF) shrimp and white fish, chilled and frozen Hilsa, crab, etc. In 2020-21, the country has earned BDT 4088.96 crore, or 1.24% of total export revenues, from exporting 76.59 metric tons of fish, shrimp, and other fishery products. However, over the past decade, the value of exported fish and fishery products has shown a nearly erratic trend. In contrast, annual production of the national fish hilsa has increased on a rising trend over the past decade. The number of carp seeds produced from both natural and artificial sources has followed an erratic increasing trend with some deviations during the past decennium. As the country's fisheries and aquaculture industries continue to grow, many cutting-edge technologies are making significant contributions that are helping to improve the quality of life for all involved. This has helped Bangladesh's economy expand over the past decade, particularly in fishing and aquaculture sectors.

Do doctors work for patients in today's business-mentality world: Looking through consumer choice theory lens?

In the 21st century world, people mostly behave with business-mentality without considering moral obligations in society. In this behavioral change, service-market, particularly Medical-care service-market is appeared to be vulnerable. Because of supplying medical-care services, the doctor or hospital receives capitation payments, fees-for-services, risk pool settlements, incentive payments or other fees. However, today it is probably the most criticized profession in world-economy country-wise such as Bangladesh. Sometimes doctors here are blamed for requiring unnecessary tests of patients for doctor’s own monetary gains. In some cases, doctors’ efforts are assumed to be connecting with pharmaceutical-products promotion by writing lengthy prescriptions. Some group claims that today doctors spend less time for each patient. All these interactions justify claiming that a patient works for a doctor when the patient visits a doctor for medical-care services. Here the existence of “asymmetric information” dominates the medical-care market where doctor takes advantages in multi-faucets. It causes market inefficiency that creates negative economic externalities – deadweight loss. Improving medical education with special emphasis on ethical aspects and soft skills in communication are considered important in aim to reduce the magnitudes of today’s dilemma of medical-care service-market. Also, strict enforcements of medical-care provisions and ethical code of conduct among all health works can be instrumental. Finally, the answer to the question “Do doctors work for patients or something else, depends on who are asked. But the reflections of today’s medical-care-market in economy of Bangladesh are no deniable, which deserves to be studied further curtailing the magnitudes of the problem.

Trade and Linkages Using Input-Output Approach: An Empirical Investigation of Bangladesh

Employing a variant of the open-static Leontief model and a 53-sector input-output table, the paper identifies a variant of the key sectors in the Bangladesh economy in terms of trade linkages. The concepts of gross and net linkages are introduced and the analysis is extended to both current (flow) and capital (stock) accounts. On the gross linkage criterion, only a handfnl of sectors emerge as key sectors with three or more linkages. These sectors are from within the manufacturing and services categories. This is also the case with sectors having two strong linkages. Agricultural sectors do not feature at all. A transition from gross to net linkages changes the rankings quite significantly. Most agricultural sectors show two strong linkages in the flow account. The findings suggest that Bangladeshi export sector· is typically undiversified in that it relies heavily on agriculture and related industries, with jute and jute textiles accounting for over 70 percent of net export earnings. Not surprisingly, most sectors in the industrial complex are net importers and the domestic production of industrial goods is highly importintensive.

Social Sustainability of Large-Scale Solar Power Implementation in Bangladesh:

Owing to the rapidly-growing economy and faster development of Bangladesh, the government has put weight on guaranteeing a non-intermittent and quality flow of electricity - to guarantee sustainable economic development. The State has made strategies for private sector participation and releasing marginal areas for energy production to diversify the electricity supply. To utilize these policies, the government designs large-scale renewable energy projects. Even though these projects are seen to be environmentally sound, they can hamper a community’s welfare if the result of the development is not reached the root level. Although solar energy is among the greenest forms of energy, not all societies can embrace it, as social, environmental and economic sustainability are the three factors that constitute total sustainability. This paper aims to qualitatively analyze the socio-economic prospects in the development of the large-scale solar park. It does a critical case study of a solar park of 10 megawatts (MW) capacity constructed on 40 acres of land in Tetulia of Panchagarh District. This structure began producing electricity in May 2019, which was added to the national grid. The research demonstrates how the advantages of renewable energy accumulate at the national and organizational level, and local communities face adverse effects. The paper recommends how social sustainability in such developments might be ensured in the future.

Legal institutional inefficiency and water pollution problem in Bangladesh

In recent years the economy of Bangladesh has increased significantly due to rapid industrialization. Despite economic prosperity, it causes serious damage to the environment by polluting water resources. Factors like discharging industrial effluents, urban runoff, and agricultural wastage are primarily responsible for polluting the water bodies in Bangladesh. This kind of pollution not only harms the environment but also severely affects human health, and in Bangladesh, nearly 80 percent of all diseases are related to water pollution, and arsenicosis is one of them. To prevent and control water pollution, the government has primarily enacted various laws and policies, including Environment Conservation Act 1995, Environment Protection Act (EPA) 1995, Environment Court Act 2000, and Bangladesh Water Act 2013. Despite numerous initiatives, legal loopholes, institutional weaknesses and lack of enforcement of Environment Impact Assessment (EIA) are the main obstacles to preventing and controlling water pollution in Bangladesh. Therefore, this paper addresses the legal shortcomings and functions of respective bodies in preventing and controlling water pollution.

Effects of Financial Inclusion on the Economic Growth of Developing Countries: An Empirical Analysis of the Bangladesh Economy

Financial inclusion in its widest meaning refers to inexpensive access to an extensive variety of financial facilities. These include banking products, insurance, stock investments, and other financial services. Financial inclusion helps economic development by widening the financial system's resource base and encouraging rural residents to save. It also helps the rural economy grow. In this study, from 2011 to 2020, the connection between financial inclusion and economic development is examined. Financial inclusion is assessed by the number of Automated Teller Machines (ATMs) and the credit-deposit ratio (CDR), among other factors. Multiple regression analysis was used to analyze secondary data, along with other approaches. Before analysis, the data were checked for completeness and correctness. VIF and Durbin-Watson tests examined multicollinearity and autocorrelation in the data. The study's policy implications include that financial inclusion, in all of its forms, is determined to be one of the most important components of economic development. The study focuses that the government and other policymakers must strive to preserve and promote sustainable and inclusive growth, which may be achieved via the expansion of financial inclusion. Furthermore, the results provide support to the government of Bangladesh’s social banking initiatives, which are being carried out in order to promote financial inclusion. The research found that ATMs significantly boost the country's GDP. Nonetheless, the CDR has a little beneficial influence on the GDP.

Impact of ready-made garments (RMG) industries and sustainability: Perspective of the pandemic period in developing country

The goal of this paper is to find out the impact of COVID-19 on the RMG sectors in the developing economy. This study consists of theoretical circumstances and was conducted with the help of several interviews, secondary sources and documents. The findings of this study show that COVID-19 has impacted negatively on the RMG industry, which has delayed the economy of Bangladesh. It shows the destructive influence of COVID-19 on RMG's sector and also shows some steps to control the number of COVID-19 infestations in the RMG's sector of Bangladesh. Additionally, it describes how we can sustain our RMG's sectors during COVID-19 and after it, and also how this study will be helpful for other countries around the world. Finally, it provides a policy implication and suggestions on how to keep sustainability after COVID-19 in this sector.

Relevance of middle-income trap (MIT) to the vision-based development in Bangladesh

PurposeThis study aims to investigate whether Bangladesh would avoid the middle-income trap (MIT) in its transition to a high-income country (HIC) according to its “Vision 2041”.Design/methodology/approachUsing both actual and forecasted secondary data, three MIT models of different approaches were used to evaluate the government’s vision-based projections. Moreover, crucial indicators of deindustrialization and institutional strength were linked to the investigation of potential transitions.FindingsAccording to the absolute definition and international forecasts, the Bangladesh economy might not fall into an MIT at its lower-middle-income level within the intended period due to being shorter than the defined limit. However, its real GDP per capita relative to the USA would remain far below the defined threshold limit of an upper-middle-income country (UMC) in 2041. Meanwhile, Bangladesh has reached the third of the five gradual phases and is awaiting a new transition in 2029. However, its vision-based plan would face challenges such as skills gaps, institutional reforms and successive global crises.Practical implicationsBangladesh might be trapped in MIT at the UMC level in the 2030s, with no path to renovate after the demographic dividend ends in 2047. In this regard, the government must demonstrate a strong political will to ensure the effectiveness of its policies and the viability of its institutions.Originality/valueThis study not only compared projections to forecasts using different MIT models but also connected transition phases to industrial policies and institutional strengths.

Phenomenon of bank scams in Bangladesh: Analysis on behavioral issues

The primary purpose of this research study is to reflect on financial anomalies, especially bank scams in Bangladesh. This study is an empirical approach developed through a well-structured Likert-scaled questionnaire to indicate different human behaviors, psychologies, and emotions that considerably impact financial incongruities in Bangladesh. The proposed model supported the structural equation model (SEM) and used SPSS Amos (Version 24) to build an attitudinal and behavioral model that reflects the complex relationships segment of this paper. Results show people try to rationalize irrational, unethical, and impertinent things and issues to achieve self-gain. Furthermore, corporations are treated as an entity for which they cannot be punished. Apart from this, human natures like greediness, dissatisfaction with what people have, societal status, possession and position, competition with peer groups for luxury, and tendency to imitate bad things are also responsible for bank scams in the Bangladeshi economy. Last but not least bad loan and default culture developed in the banking industry of Bangladesh only lacks execution laws, rules, and regulations.