IDEAS home Printed from https://ideas.repec.org/a/zib/zbimcs/v2y2019i2p19-22.html
   My bibliography  Save this article

Impact of Macroeconomic Variables on Economic Growth: Bangladesh Perspective

Author

Listed:
  • A H M Yeaseen Chowdhury

    (Department of Business Administration-General, Bangladesh University of Professionals, Mirpur Cantonment, Dhaka 1216)

  • Md. Kaysher Hamid

    (Department of Business Administration-General, Bangladesh University of Professionals, Mirpur Cantonment, Dhaka 1216.)

  • Rowshonara Akter Akhi

    (Department of Finance & Banking, Jahangirnagar University Savar, Dhaka 1342.)

Abstract

The impact of macroeconomic variables on the economic growth of Bangladesh is investigated in this study by considering GDP growth (GDP) as the representative of economic growth. In addition, inflation (INF), real interest rate (INT), exchange rate (EXR), and household consumption expenditures growth (HCE) are selected to represent the macroeconomic variables for the period of 1987-2015. Correlation and multiple regression analysis are conducted to evaluate the data. In correlation analysis, it is found that GDP has positive correlation with all the variables except INT. In regression analysis, GDP is selected as the dependent variable and INF, INT, EXR, and HCE are considered as the independent variables. It is observed that the independent variables explained 75.60% of the variability of GDP and the relationship is also found statistically significant at 95% confidence level. Therefore, this study has concluded that macroeconomic variables have significant effect on the economic growth of Bangladesh.

Suggested Citation

  • A H M Yeaseen Chowdhury & Md. Kaysher Hamid & Rowshonara Akter Akhi, 2019. "Impact of Macroeconomic Variables on Economic Growth: Bangladesh Perspective," Information Management and Computer Science (IMCS), Zibeline International Publishing, vol. 2(2), pages 19-22, October.
    • Handle: RePEc:zib:zbimcs:v:2:y:2019:i:2:p:19-22
    DOI: 10.26480/imcs.02.2019.19.22
    as

    Download full text from publisher

    File URL: https://www.theimcs.org/download/2838/
    Download Restriction: no
    File URL: https://libkey.io/10.26480/imcs.02.2019.19.22?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ziaur Rahman, 2014. "Inflation and Economic Growth in Bangladesh: An Empirical Analysis by Using VAR Model," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 4(8), pages 404-420.
    2. João R. Faria & Francisco Galrão Carneiro, 2001. "Does High Inflation Affect Growth in the Long and Short Run?," Journal of Applied Economics, Universidad del CEMA, vol. 4, pages 89-105, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Dr. Sara Tasneem & Shamim Ahmad, 2024. "Economic Growth in Bangladesh: An Econometric Investigation," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 2387-2400, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asaduzzaman, Md, 2021. "Relationship between threshold level of inflation and economic growth in Bangladesh- a multivariate quadratic regression analysis," MPRA Paper 110333, University Library of Munich, Germany, revised 02 Feb 2021.
    2. Saaed, A.A.J., 2007. "Inflation and Economic Growth in Kuwait: 1985-2005. Evidence from Co-Integration and Error Correction Model," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    3. Ohnsorge,Franziska Lieselotte & Stocker,Marc & Some,Modeste Y., 2016. "Quantifying uncertainties in global growth forecasts," Policy Research Working Paper Series 7770, The World Bank.
    4. Juan Carlos Cuestas & Estefanía Mourelle, 2009. "Inflation persistence and asymmetries: evidence for African countries," NBS Discussion Papers in Economics 2009/2, Economics, Nottingham Business School, Nottingham Trent University.
    5. Arif Khan & Gul Zeb Chaudhary, 2020. "Determinants Of Inflation In Case Of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(4), pages 151-161, December.
    6. Waseem Khadim & Saddam Ilyas & Bilal Mehmood, 2016. "Of Inflation and Growth Nexus in BRIMC Economies," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 32-45, January.
    7. Javier Cossío Medinacelli & Marco Antonio Laguna Vargas & Dennise Martin Alarcón & Pablo Mendieta Ossio & Raúl Mendoza Patiño & Martín Palmero Pantoja & Hugo Rodríguez Gonzales, 2008. "La inflación y políticas del Banco Central de Bolivia," Revista de Análisis del BCB, Banco Central de Bolivia, vol. 10(1), pages 73-109, December.
    8. Juan Carlos Cuestas & Barry Harrison, 2008. "Testing for stationarity of inflation in Central and Eastern European Countries," NBS Discussion Papers in Economics 2008/13, Economics, Nottingham Business School, Nottingham Trent University.
    9. Jaganath Behera & Alok Kumar Mishra, 2017. "The Recent Inflation Crisis and Long-run Economic Growth in India: An Empirical Survey of Threshold Level of Inflation," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(1), pages 105-132, June.
    10. Imran H. Shah & Ian Corrick & Abdul Saboor, 2018. "How should Central Banks Respond to Non-neutral Inflation Expectations?," Open Economies Review, Springer, vol. 29(2), pages 321-351, April.
    11. Konan Leon N'dri, 2017. "Inflation and economic growth in Cote d'Ivoire," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 5(2), pages 39-44, April.
    12. Abdul Jalil & Samia Manan & Sundus Saleemi, 2016. "Estimating the growth effects of services sector: a cointegration analysis for Pakistan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-14, December.
    13. Souhir Elhmedi & Niazi Kammoun, 2024. "Capital account liberalization and economic growth in Tunisia," SN Business & Economics, Springer, vol. 4(6), pages 1-21, June.
    14. Chang, Tsangyao & Ranjbar, Omid & Tang, D.P., 2013. "Revisiting the mean reversion of inflation rates for 22 OECD countries," Economic Modelling, Elsevier, vol. 30(C), pages 245-252.
    15. Combey, Adama & Nubukpo, Kako, 2010. "Effets Non Linéaires de l'Inflation sur la Croissance dans l'UEMOA [Nonlinear Effects of Inflation on Growth in the WAEMU]," MPRA Paper 23542, University Library of Munich, Germany.
    16. Md. Sayebur Rahman, 2023. "Exploring the Impact of Inflation on Economic Development in Bangladesh," International Journal of Science and Business, IJSAB International, vol. 19(1), pages 87-96.
    17. Muhammad Zahid Naeem & Chan Bibi, 2019. "Macroeconomic Determinants of Economic Growth under the Perspective of Monetary Policy in Pakistan: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(3), pages 164-176, September.
    18. Khairul Kabir Sumon & Md. Sazib Miyan, 2017. "Inflation and Economic Growth: An Empirical Evidence of Bangladesh (1986-2016)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 454-464.
    19. AGBOTON, Damien Joseph, 2024. "Relationship between Inflation and Economic Growth in the West African Economic and Monetary Union (WAEMU): A Search for New Evidence of Causality," MPRA Paper 121814, University Library of Munich, Germany.
    20. Raynold Runganga, 2020. "Inflation and Economic Growth in Zimbabwe is there Any Inflation Threshold Level?," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 8(1), pages 1-10.

    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:zib:zbimcs:v:2:y:2019:i:2:p:19-22. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Zibeline International Publishing The email address of this maintainer does not seem to be valid anymore. Please ask Zibeline International Publishing to update the entry or send us the correct address (email available below). General contact details of provider: https://www.theimcs.org/ .

    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.