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Impact of Banking Sector Efficiency and Profitability on Bangladesh Economy

Author

Listed:
  • Md.Thasinul Abedin

    (Notre Dame University Bangladesh)

Abstract

This paper attempts to investigate how banking sector efficiency and profitability along with per capita electricity consumption, domestic investment, trade openness, external debt, and government expenditures affect Bangladesh economy both in the short run and in the long run by using time series data from 1972-2013. There exists cointegrating relationship among the variables in equation (1). Both efficiency and profitability have positive impact on per capita gross domestic product in the long run but the impact of efficiency is insignificant unlike that of profitability. Therefore, over time bank efficiency and profitability will boost up the Bangladesh economy.

Suggested Citation

  • Md.Thasinul Abedin, 2017. "Impact of Banking Sector Efficiency and Profitability on Bangladesh Economy," Economics Bulletin, AccessEcon, vol. 37(3), pages 1708-1719.
    • Handle: RePEc:ebl:ecbull:eb-17-00001
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I3-P156.pdf
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    References listed on IDEAS

    as
    1. Peter C.B. Phillips & Pierre Perron, 1986. "Testing for a Unit Root in Time Series Regression," Cowles Foundation Discussion Papers 795R, Cowles Foundation for Research in Economics, Yale University, revised Sep 1987.
    2. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    3. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    4. Phillips, P C B, 1987. "Time Series Regression with a Unit Root," Econometrica, Econometric Society, vol. 55(2), pages 277-301, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking Sector Efficiency; Banking Sector Profitability; Short Run Impact; and Long Run Impact;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

    Statistics

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