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Financial repression and economic distortions to the stage of economic growth and agricultural development in Bangladesh

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  • Sikder, Md.Anowarul Islam

Abstract

Financial repression in a developing country is not new to us.The government may take policy for financial repression due to easy collection of inflation tax to the stage of economic development.This study is concerned to find the positive relationship between financial development and economic growth and productivity in the economy of Bangladesh.The research concluded that the financial repression has a negative relationship to the economic growth and productivity in the economy of Bangladesh. This study found evidence the effect of financial repression is positive to the financial development in Bangladesh as it was to the high growth period in Japan.But the scenario was different for Latin American countries.Transition to the financial development from the stage of financial repression to the stage of financial liberalization is found positive to the economic growth and productivity in Bangladesh.

Suggested Citation

  • Sikder, Md.Anowarul Islam, 2008. "Financial repression and economic distortions to the stage of economic growth and agricultural development in Bangladesh," MPRA Paper 34975, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:34975
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    References listed on IDEAS

    as
    1. Felix Rioja & Neven Valev, 2004. "Finance and the Sources of Growth at Various Stages of Economic Development," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 127-140, January.
    2. Asli Demeirgüç-Kunt & Ross Levine (ed.), 0. "Finance and Growth," Books, Edward Elgar Publishing, number 17119.
    3. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Repression; Economic Distortion; Sustainable Economic Growth;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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