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Exploring the Nexus between Domestic Consumption of Milled Rice (DCM) and the Gross Domestic Product (GDP) of Bangladesh

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  • Md. Atiqur Rahman

    (Department of Business Administration, Pundra University of Science & Technology, Rangpur Road, Gokul, Bogura, Bangladesh.)

  • Md. Khalid Hassan

    (Department of Business Administration, Pundra University of Science & Technology, Rangpur Road, Gokul, Bogura, Bangladesh.)

Abstract

Using annual data from 1960 to 2014, the aim of the current investigation is to evaluate the link between Bangladesh's GDP and domestic consumption of milled rice (DCM). In this study, the Kwiatkowski-Phillips-Schmidt-Shin (KPSS), Augmented Dickey-Fuller (ADF), Elliott-Rothenberg-Stock (ERS), and Phillips-Perron (PP) tests were implemented to observe the stationarity of the variables. Next, the causal link is established using the Granger causality (GC) test, and the long-term association between the study’s variables is evaluated using the Johansen cointegration test. The GC test indicates that there is bidirectional causation, the Johansen co-integration test indicates that there is no long-term association between the variables, and there is no unit root between the variables, according to the experimental results of the stationary test. Therefore, the domestic consumption of milled rice (DCM) and GDP do not cointegrate over the long run.

Suggested Citation

  • Md. Atiqur Rahman & Md. Khalid Hassan, 2022. "Exploring the Nexus between Domestic Consumption of Milled Rice (DCM) and the Gross Domestic Product (GDP) of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 17(1), pages 21-30.
    • Handle: RePEc:aif:journl:v:17:y:2022:i:1:p:21-30
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    References listed on IDEAS

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