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Empirical Analysis of Factors Influencing Economic Growth Rate in Bangladesh

Received: 12 January 2020     Accepted: 4 February 2020     Published: 10 March 2020
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Abstract

Economic growth rate plays an important role in the development of a country. Bangladesh has tremendous success to increase its economic growth rate and now it is known as the fastest-growing developing country in the world. This paper explores the important factors that influence the economic growth rate in Bangladesh. The data for the analysis is extracted from the United Nations Conference on Trade and Development from 2000 to 2015. For bivariate analysis, the correlation coefficient is measured and for multivariate analysis, multiple linear regression model is fitted. For the statistical analysis, the statistical software R program is used. The bivariate analysis shows that gross national income, export merchandise, import merchandise, foreign direct investment, population, remittance pay, remittance receive are correlated with the gross domestic product. Pearson’s correlation between GDP and balance of payment, ICT import and ICT export is found to be very low. The factors which are moderately or highly correlated with the GPD have been used in the multivariate model. The most significant factors that influence the gross domestic product is gross national income and remittance received. The study also found that export merchandise and import merchandise have a significant impact on the economic growth in Bangladesh.

Published in International Journal of Business and Economics Research (Volume 9, Issue 2)
DOI 10.11648/j.ijber.20200902.14
Page(s) 78-82
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

GDP, FDI, Remittance, Economic Growth Rate, Import, Export

References
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[9] Emmanuel, N. O., William, F. M., Gladys, A., Denis, Y. N. (2012), Microeconomic determinants of migrant remittances to Nigerian household, Economics Bulletin, 32 (4), 3425-3438.
[10] Agosin, M. R. and R. Mayer, 2000, “Foreign investment in developing countries: Does it crowd in domestic investment?” UNCTAD Discussion Paper 146, Geneva.
[11] Agrawal, P. (2000). Economic impact of foreign direct investment in South Asia. India and the WTO, 117.
[12] Li, X., and Liu, X. 2005. Foreign direct investment and economic growth: An increasingly endogenous relationship. World Development 33 (3): 393–407. doi: 10.1016/j.worlddev.2004.11.001.
[13] Mottaleb, Khondoker Abdul, 2007. "Determinants of Foreign Direct Investment and Its Impact on Economic Growth in Developing Countries," MPRA Paper 9457, University Library of Munich, Germany.
[14] Rahman, A. (2012). Foreign Direct Investment in Bangladesh, Prospects and Challenges and Its Impact on Economy.
[15] Çetinkaya, M and Erdogan, S (2010), “Var Analysis of the Relation between GDP, Import and Export: Turkey Case.” International Research Journal of Finance and Economics, Vol. 55, pp. 135-145.
[16] Chaudhary, M. A., Shirazi, N. S., &Choudhary, N. A. S. (2007). Trade policy and economic growth in Bangladesh: A revisit. Pakistan Economic and Social Review, 45 (1), 1-26.
[17] Krugman, P. R. and Obstfeld, M. (2009), “Export-oriented Industrialization: The East Asian miracle,” in: International Economics: Theory and Policy, 8th ed., Pearson: Addison Wesley, Boston.
[18] Hossain, M. A., &Alauddin, M. (2005). Trade liberalization in Bangladesh: the process and its impact on macro variables particularly export expansion. The Journal of Developing Areas, 127-150.
[19] Fischer, S. (1993) The Role of Macroeconomic Factors in Growth, Journal of Monetary Economics no. 32. M.I.T. Cambridge, USA, pp. 485-512
[20] Ristanovic, V., Macroeconomic Determinant Of Economic Growth And World Economic-financial Crisis, Facta Universitatis (Economics and Organization) Vol. 7, No 1, 2010, pp. 17 – 33
[21] Davis, F. D., Bagozzi, R., and Warshaw, P. R. (1989) “User Acceptance of Computer Technology: A Comparison of Two Theoretical Models,” Management Science (35:8), pp. 982-1003.
[22] Todaro, M. P., & Smith, S. C. (2011). Economic Development 11. Addison-Wesley, Pearson, ISBN, 10, 0-13.
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Cite This Article
  • APA Style

    Fatema Jannat, Mohammad Rubel Miah, Mohammad Omar Faruk, Shafiqul Alam. (2020). Empirical Analysis of Factors Influencing Economic Growth Rate in Bangladesh. International Journal of Business and Economics Research, 9(2), 78-82. https://doi.org/10.11648/j.ijber.20200902.14

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    ACS Style

    Fatema Jannat; Mohammad Rubel Miah; Mohammad Omar Faruk; Shafiqul Alam. Empirical Analysis of Factors Influencing Economic Growth Rate in Bangladesh. Int. J. Bus. Econ. Res. 2020, 9(2), 78-82. doi: 10.11648/j.ijber.20200902.14

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    AMA Style

    Fatema Jannat, Mohammad Rubel Miah, Mohammad Omar Faruk, Shafiqul Alam. Empirical Analysis of Factors Influencing Economic Growth Rate in Bangladesh. Int J Bus Econ Res. 2020;9(2):78-82. doi: 10.11648/j.ijber.20200902.14

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  • @article{10.11648/j.ijber.20200902.14,
      author = {Fatema Jannat and Mohammad Rubel Miah and Mohammad Omar Faruk and Shafiqul Alam},
      title = {Empirical Analysis of Factors Influencing Economic Growth Rate in Bangladesh},
      journal = {International Journal of Business and Economics Research},
      volume = {9},
      number = {2},
      pages = {78-82},
      doi = {10.11648/j.ijber.20200902.14},
      url = {https://doi.org/10.11648/j.ijber.20200902.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200902.14},
      abstract = {Economic growth rate plays an important role in the development of a country. Bangladesh has tremendous success to increase its economic growth rate and now it is known as the fastest-growing developing country in the world. This paper explores the important factors that influence the economic growth rate in Bangladesh. The data for the analysis is extracted from the United Nations Conference on Trade and Development from 2000 to 2015. For bivariate analysis, the correlation coefficient is measured and for multivariate analysis, multiple linear regression model is fitted. For the statistical analysis, the statistical software R program is used. The bivariate analysis shows that gross national income, export merchandise, import merchandise, foreign direct investment, population, remittance pay, remittance receive are correlated with the gross domestic product. Pearson’s correlation between GDP and balance of payment, ICT import and ICT export is found to be very low. The factors which are moderately or highly correlated with the GPD have been used in the multivariate model. The most significant factors that influence the gross domestic product is gross national income and remittance received. The study also found that export merchandise and import merchandise have a significant impact on the economic growth in Bangladesh.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Empirical Analysis of Factors Influencing Economic Growth Rate in Bangladesh
    AU  - Fatema Jannat
    AU  - Mohammad Rubel Miah
    AU  - Mohammad Omar Faruk
    AU  - Shafiqul Alam
    Y1  - 2020/03/10
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijber.20200902.14
    DO  - 10.11648/j.ijber.20200902.14
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
    SP  - 78
    EP  - 82
    PB  - Science Publishing Group
    SN  - 2328-756X
    UR  - https://doi.org/10.11648/j.ijber.20200902.14
    AB  - Economic growth rate plays an important role in the development of a country. Bangladesh has tremendous success to increase its economic growth rate and now it is known as the fastest-growing developing country in the world. This paper explores the important factors that influence the economic growth rate in Bangladesh. The data for the analysis is extracted from the United Nations Conference on Trade and Development from 2000 to 2015. For bivariate analysis, the correlation coefficient is measured and for multivariate analysis, multiple linear regression model is fitted. For the statistical analysis, the statistical software R program is used. The bivariate analysis shows that gross national income, export merchandise, import merchandise, foreign direct investment, population, remittance pay, remittance receive are correlated with the gross domestic product. Pearson’s correlation between GDP and balance of payment, ICT import and ICT export is found to be very low. The factors which are moderately or highly correlated with the GPD have been used in the multivariate model. The most significant factors that influence the gross domestic product is gross national income and remittance received. The study also found that export merchandise and import merchandise have a significant impact on the economic growth in Bangladesh.
    VL  - 9
    IS  - 2
    ER  - 

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Author Information
  • Department of Business Administration, Noakhali Science and Technology University, Noakhali, Bangladesh

  • Department of Business Administration, Noakhali Science and Technology University, Noakhali, Bangladesh

  • Department of Statistics, Noakhali Science and Technology University, Noakhali, Bangladesh

  • Department of Business Administration, Noakhali Science and Technology University, Noakhali, Bangladesh

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