Thoughts on Banking and Finance, January-June, 2017
Does Investment stimulate Bangladesh? An Empirical Analysis.
- DOI
- https://doi.org/10.64968/bbta.tbf.2017.06.01.07
- Journal volume & issue
-
Vol. 6 Issue 1
pp. 131-151
- Authors
- Mohammad Masuduzzaman Bishnu Pada Biswas
Abstract
This paper examines the significant role of investment in the economic growth process of Bangladesh. The study revisits empirically the impact of investment on economic growth. The study applies Ordinary Least Square (OLS) Method for using data from FY1983 to FY2017 period to investigate the responsiveness of investment to GDP growth. The key finding of the study depicts that there is a positive relationship between investment and economic growth in Bangladesh. The results enable us to estimate the desired level of investment to achieve a target for GDP growth. It also reveals that there is a gap of investment to achieve a targeted level of growth in Bangladesh and suggests to increase investment gradually to the desired level.
Keywords: Investment, GDP growth, Growth models, Ordinary least squares method, Bangladesh.
JEL Classification: C32, E22, E23, O53, O57.