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Economic Growth In Bangladesh: Impact Of Fiscal Policy And Monetary Policy

Author

Listed:
  • Mohammad Saiful Islam

    (Department of Business Administration Leading University, Sylhet,Bangladesh)

  • Marina Akter

    (Department of Business Administration Leading University, Sylhet,Bangladesh)

  • Md. Sajadul Islam Sarker

    (Department of Business Administration Leading University, Sylhet,Bangladesh)

Abstract

The purpose of this research paper is to identify the impact of significant components of fiscal policy and monetary policythat determine the level of economic growth in Bangladesh. Correlation, regression, test of hypothesis, ANOVA and trend analysis have been conducted in this paper using SPSS software to analyze data. Both the primary and secondary data have been used in this paper. Data have been generated from economic reviews, journals, expert opinions etc. The results of this analysis evidence that investment of current year, net foreign finance, tax burden/tax revenue and trade balance are significantly influencing the economic growth in Bangladesh among several components of fiscal policy where tax revenue has been found as most significant determinant of economic growth. Besides, it has been found that several tools of monetary policy are significantly influencing economic growth where most significant determinants are low variable reserve ratio, flexibility in rationing of credit and fixation of less margin requirement.

Suggested Citation

  • Mohammad Saiful Islam & Marina Akter & Md. Sajadul Islam Sarker, 2018. "Economic Growth In Bangladesh: Impact Of Fiscal Policy And Monetary Policy," Romanian Economic Business Review, Romanian-American University, vol. 13(2), pages 45-57, June.
    • Handle: RePEc:rau:journl:v:13:y:2018:i:2:p:45-57
    as

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    References listed on IDEAS

    as
    1. Jaejoon Woo & Manmohan S. Kumar, 2015. "Public Debt and Growth," Economica, London School of Economics and Political Science, vol. 82(328), pages 705-739, October.
    2. Zafar Iqbal & Ghulam Mustafa Zahid, 1998. "Macroeconomic Determinants of Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(2), pages 125-148.
    Full references (including those not matched with items on IDEAS)

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