IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.46year2012issue2pp125-143.html
   My bibliography  Save this article

The Impact Of Economic Reforms On Growth: A Case Study Of Bangladesh

Author

Listed:
  • Omar K M R Bashar
  • Habibullah Khan

    (Swinburne University of Technology, Australia
    U21 Global, Singapore)

Abstract

This study makes a brief assessment of the consequences of economic reforms that included a series of liberalization measures on Bangladesh's growth process by analyzing the 1974-2007 data with the help of cointegration, error correction, and Granger causality tests. The results suggest that long-run economic growth in Bangladesh is largely explained by investments in both physical and human capital, trade openness, and financial as well as capital account liberalization. While the causality runs in both ways between capital account liberalization and economic growth, it runs only in one direction from physical capital and financial liberalization to economic growth in the short-run. Interestingly, growth is not affected by trade openness in the short-run. While trade liberalization and capital account liberalization have had significant positive impacts on economic growth in the long-run, the effects of financial liberalization were found to be significantly negative. This emphasizes the need for ensuring real sector development as a prerequisite for the success of financial liberalization.

Suggested Citation

  • Omar K M R Bashar & Habibullah Khan, 2012. "The Impact Of Economic Reforms On Growth: A Case Study Of Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 46(2), pages 125-143, July-Dece.
    • Handle: RePEc:jda:journl:vol.46:year:2012:issue2:pp:125-143
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v046/46.2.bashar.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thi Thuy Hang Le & Van Chien Nguyen & Thi Hang Nga Phan, 2022. "Foreign Direct Investment, Environmental Pollution and Economic Growth—An Insight from Non-Linear ARDL Co-Integration Approach," Sustainability, MDPI, vol. 14(13), pages 1-14, July.
    2. Biswajit Maitra, 2018. "Investment in Physical, Human Capital, Economic Growth and Life Expectancy in Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(2), pages 251-269, September.

    More about this item

    Keywords

    Trade liberalization; financial liberalization; capital account liberalization; growth; cointegration; causality;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.46:year:2012:issue2:pp:125-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.