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Impact of Macroeconomic ‎Variables on GDP of Bangladesh: ‎An Empirical Analysis ‎

Mr. Mohammad Mushfiqul Haque Mukit

Volume 4 Issue 1 | Mar 2021

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Abstract

Economies are not self-sufficient in the production of all kinds of goods and ‎‎services. Each country has to import to meet its own demand. Bangladesh is no ‎‎exception to this rule. Bangladesh is a developing country; its economy has ‎been ‎hit by a trade deficit since the beginning. Thus, this article examines the ‎impact of ‎exports, imports, and inflation on Bangladesh's GDP by applying the ‎Augmented ‎Dickey-Fuller (ADF) test, Johansen integration test, and Vector ‎autoregressive ‎model ‎(VAR) analysis. To conduct this study annual time series ‎data from 1982-2019 ‎has been used. Exports, imports, and inflation are very ‎potential macroeconomic ‎factors for Bangladesh's economy. The results ‎obtained concluded that the series ‎was present and that the regression model ‎was significant. Based on the results, ‎exports had a positive but not significant ‎relationship to GDP. Imports, on the ‎other hand, had an insignificant and ‎negative relationship to GDP. Inflation is a ‎significant and positive relationship ‎to GDP.‎
Keywords: Exports, Import, Inflation and GDP