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Convergence in Per Capita Income across Regions in Bangladesh

Author

Listed:
  • Rahman, Md Habibur

    (Senior Research Economist at Policy Analysis Unit (PAU) of Bangladesh Bank)

  • Hossain, Md Sakhawat

    (Research Economist at Policy Analysis Unit (PAU) of Bangladesh Bank)

Abstract

This paper examines per capita income convergence across six divisions–– Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, and Barisal––in Bangladesh using annual data during 1977-2000. The methodology uses ordinary least squares as well as time series ap proach, specifically unit root and cointegration techniques. The findings, however, do not provide enough evidence in favour of th e convergence hypothesis even though the regions have similar socio-economic background and physical infrastructure, and access to the same financial system , administrative institutions, and technology. The series of income deviations from the benchmark fail to reject the null of non-stationarity in most cases. However, the presence of cointegration between various economic factors and the leading regions suggests the presence of long-run equilibrium relationship among them. Therefore, proper attention in terms of providing infrastructural as well as technological and financial supports to the lagging regions may be intensified. It may be worth mentioning, in this regard, that the current strategy of pro- poor growth seems to be a proper way of expediting per capital income convergence across regions in Bangladesh.

Suggested Citation

  • Rahman, Md Habibur & Hossain, Md Sakhawat, 2009. "Convergence in Per Capita Income across Regions in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 32(1), pages 45-60, March.
    • Handle: RePEc:ris:badest:0477
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    References listed on IDEAS

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    Cited by:

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    2. Amit Batabyal & Peter Nijkamp, 2014. "Technology, Learning, and Long Run Economic Growth in Leading and Lagging Regions," ERSA conference papers ersa14p893, European Regional Science Association.
    3. Sanghamitra Bandyopadhyay, 2016. "The persistence of inequality across Indian states," Working Papers 74, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    4. Begum, Syeda Shahanara & Deng, Quheng & Gustafsson, Björn, 2012. "Economic growth and child poverty reduction in Bangladesh and China," Journal of Asian Economics, Elsevier, vol. 23(1), pages 73-85.

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    More about this item

    Keywords

    Convergence; Per Capita Income; Bangladesh;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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