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An analysis of the determinants of the long-run growth rate of Bangladesh

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  • B. Bhaskara Rao
  • Gazi Mainul Hassan

Abstract

This article develops a framework to analyse the determinants of the long term growth rate of Bangladesh. It is based on the Solow (1956) growth model and its extension by Mankiw et al . (1992) and follows Senhadji's (2000) growth accounting procedure to estimate Total Factor Productivity (TFP). Our Growth Accounting Exercise (GAE) shows that growth rate in Bangladesh, until the 1990s was primarily due to factor accumulation. Since then, however, TFP has made a small positive contribution. Using our results on the determinants of TFP, we also examine policy options to double per capita income of Bangladesh in about 15 years.

Suggested Citation

  • B. Bhaskara Rao & Gazi Mainul Hassan, 2012. "An analysis of the determinants of the long-run growth rate of Bangladesh," Applied Economics, Taylor & Francis Journals, vol. 44(5), pages 565-580, February.
  • Handle: RePEc:taf:applec:44:y:2012:i:5:p:565-580
    DOI: 10.1080/00036846.2010.510466
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    References listed on IDEAS

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    1. StevenN. Durlauf & Andros Kourtellos & ChihMing Tan, 2008. "Are Any Growth Theories Robust?," Economic Journal, Royal Economic Society, vol. 118(527), pages 329-346, March.
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    Cited by:

    1. Mohammad Salahuddin & Jeff Gow, 2015. "The relationship between economic growth and remittances in the presence of cross-sectional dependence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 207-221, January-M.
    2. Hassan, Gazi & Cooray, Arusha, 2015. "Effects of male and female education on economic growth: Some evidence from Asia," Journal of Asian Economics, Elsevier, vol. 36(C), pages 97-109.
    3. Ronald Kumar, 2014. "Exploring the nexus between tourism, remittances and growth in Kenya," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1573-1588, May.
    4. Kumar, Ronald Ravinesh, 2013. "Remittances and economic growth: A study of Guyana," Economic Systems, Elsevier, vol. 37(3), pages 462-472.
    5. Kumar, Saten & Pacheco, Gail, 2012. "What determines the long run growth rate in Kenya?," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 705-718.
    6. Cooray, Arusha & Paradiso, Antonio & Truglia, Francesco Giovanni, 2013. "Do countries belonging to the same region suggest the same growth enhancing variables? Evidence from selected South Asian countries," Economic Modelling, Elsevier, vol. 33(C), pages 772-779.

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