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Assessing the Impact of the Global Economic and Financial Crisis on Bangladesh: An Intervention Analysis

Author

Listed:
  • Debapriya Bhattacharya
  • Shouro Dasgupta
  • Dwitiya Jawher Neethi

Abstract

The global financial and economic crisis had a lagged impact on the economy of Bangladesh, resulting in declines in export, import, FDI and foreign aid inflows. All these had concomitant negative effects on the country’s various socio-economic indicators including the GDP growth rate and per capita income. While a number of papers have used descriptive analysis to investigate the sectoral impacts of the crisis in Bangladesh, this paper incorporates an Intervention Analysis approach with Vector Autoregression to extend a Solow growth model to explore the impact of the global crisis on the key economic indicators of Bangladesh. The study finds that due to the crisis, Bangladesh lost approximately 0.60 per cent of real GDP per capita growth in 2009; equivalent to a loss of USD 2 billion in real GDP.

Suggested Citation

  • Debapriya Bhattacharya & Shouro Dasgupta & Dwitiya Jawher Neethi, 2012. "Assessing the Impact of the Global Economic and Financial Crisis on Bangladesh: An Intervention Analysis," CPD Working Paper 97, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:97
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    References listed on IDEAS

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    Cited by:

    1. Syed Moudud-Ul-Huq & Rabaka Akter & Tanmay Biswas, 2020. "Impact of Financial Crisis on Credit Risk: Pre- and Post-financial Crises 
in an Emerging Economy," FIIB Business Review, , vol. 9(2), pages 118-132, June.
    2. Sonia, Akter & Syed Abul, Basher, 2013. "The impacts of the global food and financial crises on household food security and economic well-being: evidence from Bangladesh," MPRA Paper 47859, University Library of Munich, Germany.

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