...flow in Bangladesh (Source: http://www.bangladesh-bank.org/) 2015-2016 | | | 2016-2017 | | | Year/Month | Remittances | | In million US dollar | In million Taka | 2014-2015 | 9920.00(April’15) | 770047.12 | 2013-2014 | 14228.26 | 1105823.62 | 2012-2013 | 14461.14 | 1156460.78 | 2011-2012 | 12843.43 | 1018827.79 | 2010-2011 | 11650.32 | 829928.90 | ***Year Wise Foreign currency Reserve in Bangladesh Bank: (Source: http://www.bangladesh-bank.org/) Period | Reserves(In million US $) | 2016-2017 | | 2015-2016 | | 2014-2015 | 23B (26th Feb, 15) | 2013-2014 | 21558.0 | 2012-2013 | 15315.2 | 2011-2012 | 10364.4 | 2010-2011 | 10911.6 | The inflation rate in Bangladesh was recorded at 6.32 percent in April of 2015. Inflation Rate in Bangladesh averaged 6.63 percent from 1994 until 2015 Inflation in Bangladesh in 2015, January-6.04, February-6.14, March-6.27 And April-6.32. 10.59 million tons in the year 1971 when the country's population was only about 70.88 millions. However, the country is now producing about 25.0 million tons to feed her 135 million people. This indicates that the growth of rice production was much faster than the growth of population. This increased rice production has been possible largely due to the adoption of modern rice varieties on around 66% of the rice land which contributes to about 73% of the country's total rice production However, there is no reason to be complacent. The population of Bangladesh is still...
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...Series: WP 0604 Inflation and Economic Growth in Bangladesh: 1981-2005 Shamim Ahmed Md. Golam Mortaza December 2005 Policy Analysis Unit (PAU) Research Department, Bangladesh Bank Head Office, Dhaka, Bangladesh (www.bangladeshbank.org.bd) (www.bangladesh-bank.org) Policy Analysis Unit* (PAU) Working Paper Series: WP 0604 Inflation and Economic Growth in Bangladesh: 1981-2005 Shamim Ahmed Research Economist, Policy Analysis Unit Research Department Bangladesh Bank Md. Golam Mortaza Senior Research Associate Centre for Policy Dialogue December 2005 Copyright © 2005 by Bangladesh Bank * The Bangladesh Bank (BB), in cooperation with the World Bank Institute (WBI), has formed the Policy Analysis Unit (PAU) within its Research Department in July 2005. The aim behind this initiative is to upgrade the capacity for research and policy analysis at BB. As part of its mandate PAU will publish, among other, several Working Papers on macroeconomic research completed by its staff every quarter. The precise topics of these papers are chosen by the Resident Economic Adviser in consultation with the PAU members. These papers reflect research in progress, and as such comments are most welcome. It is anticipated that a majority of these papers will eventually be published in learned journals after the due review process. Neither the Board of Directors nor the management of Bangladesh Bank, nor WBI, nor any agency of the Government of Bangladesh or the World Bank Group necessarily...
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...Introduction The positive relationship between economic growth and poverty reduction is not automatic. In Bangladesh, development expenditures have been growing in various proportions in agriculture, rural development, water resources, infrastructure, education and health sector. Each of these sectors impacts growth and poverty reduction differently. Allocation on agriculture, rural development, health, education and social safety net impacts poverty reduction at a higher rate and impacts economic growth too. Investment in infrastructure development, capital intensive industrialization, and some service sectors may boost up economic growth at a higher rate but may not impact poverty reduction at the desired rate. There is no doubt that faster economic growth is associated with faster poverty reduction. Since domestic/national resources fall short of the requirement, development partners play an important role in Bangladesh's development endeavour. In case of Bangladesh, in-spite of some remarkable positive performance against some indicators, aggregate poverty rates still remain high. Thus, it is high time to look forward for other options and means to accelerate economic growth and poverty reduction. Reform is Critical for Growth and Poverty Reduction The fundamental development constraints in Bangladesh are poor governance, corruption, law and order, public service delivery, and effectiveness of public expenditures to improve human development. It is important...
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...LIBERALIZATION ON ECONOMIC GROWTH OF DEVELOPING COUNTRIES: A CASE OF BANGLADESH ECONOMY Umme Humayara Manni1, Munshi Naser Ibne Afzal1 1 Universiti Brunei Darussalam, Faculty of Business, Economics and Policy Studies, Brunei. ABSTRACT The objective of this paper is to assess the impact of trade liberalization on Bangladesh economy between the periods 1980 to 2010. This research analyzes the achievements of the economy in terms of important variables such as growth, inflation, export and import after trade liberalization. The paper uses simple Ordinary Least Square (OLS) technique as methodology for empirical findings. The analysis clearly indicates that GDP growth increased consequent to liberalization. Trade liberalization does not seem to have affected inflation in the economy. The quantitative analysis also suggests that greater openness has had a favourable effect on economic development. Both real export and imports have increased with greater openness. Liberalization policy certainly improves export of the country which eventually leads higher economic growth after 1990s. The findings of this study can be an interesting example for trade liberalization policy study in developing countries. KEYWORDS Trade liberalization, economic growth, developing countries, Bangladesh economy, OLS technique, openness, export, import, inflation 1. INTRODUCTION Like many developing countries, the primary focus of policies in Bangladesh is to obtain high and sustainable growth. However, to achieve...
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...report entitled “Analysis of Economic Growth and External Sector Behavior” mainly focuses on the study of the structure of the external sector of Bangladesh and its impact on GDP. It involves economic models developed to determine the impact of each sector-Export, Import, Foreign Aid and Remittance, on GDP of Bangladesh. It also involves an analysis of the behavior of these factors in three SAARC countries and the application of the regression model developed. The economic model was developed based on the past behavior of GDP and the external sector. It indicated that Remittance is the sector having the most significant impact on GDP and aid the second most significant. While imports negatively affect economic growth, exports have played a very important role over the period. The remittance of Bangladesh has been increasing over the last few years. Hence, its impact on GDP has also been rising. In the span of 34 years export as percentage of GDP increased from 2.2% to 15.4%. Hence, performance was moderately good. The economy has been suffering from ever increasing trade deficits, despite several export promotional measures. Large import payments mainly account for this problem. Foreign aid shows large fluctuations over the period Finally, an analysis was conducted on the behavior of the external sectors in the SAARC countries using the regression model. Export was found to be the dominant sector in India, while imports had the minimum impact on GDP. Pakistan was found to be more dependent...
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...use of taxation and government expenditure to regulate the aggregate level of economic activity in a country. Fiscal policy in Bangladesh basically comprises activities, which the country carries out to obtain and use resources to provide services while ensuring optimum efficiency of the economic units. The policy influences the behavior of economic forces through public finance. Major objectives of the fiscal policy of Bangladesh are to ensure macroeconomic stability of the country, promote economic growth, and develop a mechanism for equitable distribution of income. The main tools to achieve these objectives are variation in public revenue, variation in public expenditure, and management of public debt. These are reflected in the budgetary operations of the government, prepared and implemented on year-on-year basis. While the Government’s fiscal strategy emphasizes the need for maintaining overall Macroeconomic stability and fiscal sustainability, the government is investing substantially in building physical infrastructure especially in the communication and Power sector as well as in developing human resources for achieving growth and augmenting the development process – necessary conditions for reducing poverty. The present government has planned to raise the level of investment to 30-32 percent of GDP in order to achieve a GDP Growth rate of 8 percent by 2013 as envisaged in “Vision 2021”. This investment may come from the government, the private sector as well...
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...Introduction Bangladesh is a country of more than 140 million people, and it is one of South Asia’s least developed countries. The country has under gone a major shift in its economic philosophy and management in recent years. At Bangladesh’s birth, the country embraced socialism as the economic ideology with a dominant role for the public sector. But, since the mid-seventies, it undertook a major restructuring towards establishing a market economy with emphasis on private sector-led economic growth. Bangladesh achieved good economic progress during the 1990s by adopting a series of structural and economic reform measures. The stabilization program reduced inflation as well as fiscal and current accounts deficit and established a healthy foreign exchange reserve position. Economic performance improved with gross domestic product (GDP) growth averaging 5 percent in the 1990s compared with 4 percent in the preceding decade. The acceleration in economic growth was accompanied by decreased incidence of poverty and a distinct improvement of some key social indicators. Rapid growth in food grain production has been a remarkable feature of the country’s economic performance in recent years. In FY2000, Bangladesh reached self-sufficiency in food grain production. A combination of factors accounts for the robust growth of the agriculture sector, and in particular of food grains. According to a World Bank estimate, Bangladesh has the 36th largest economy in the world in terms of GNP based...
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...[pic] Topic: Recent International Trade scenario of Bangladesh BOP Submitted To: Mr. Shantanu Kumar Roy Joint Director Foreign exchange policy department. Bangladesh Bank, Sylhet. Lecturer Department of Business Administration Metropolitan University, Sylhet. Submitted By: Mir Md. Nazmul Haydar MBA 22nd Batch ID No: 111-126-025 Metropolitan University Content |Sl No. |Title |Page no. | |1 |Introduction |1-3 | |2 |Composition and Performance of Exports of Bangladesh |3 | | |Export Earnings and Export Growth | | |3 |Export Earnings and Export Growth by Commodities |3 | |4 |Exports of Primary and Manufacturing Commodities |4 | |5 |Export Value, Volume and Unit Price Index |4-5 | |6 |Exports Performance Compared to Imports...
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...BUS530 MACROECONOMICS ECONOMIC GROWTH & POVERTY REDUCTION IN BANGLADESH Prepared by Aadil Choudhury 112 0322 660 Section 1 INTRODUCTION The relationship between economic growth and poverty reduction is not always automatic. To achieve poverty reduction, robust economic growth is necessary but not sufficient. The financial allocation and source of finance play a crucial role in implementing the development endeavor and achieving macroeconomic objectives like growth, employment, and price stability. Investing in some sectors of the economy may contribute to rapid economic growth while others may contribute to poverty reduction. Again there are some sectors which may contribute to achieving both growth and poverty reduction. BANGLADESH’S CHALLENGES IN ECONOMIC GROWTH & POVERTY REDUCTION Bangladesh has had some success in attaining economic growth and reducing poverty. But many more challenges lie ahead of us which we must face to eradicate poverty and move towards a poverty-free Bangladesh. Challenge of better monetary management The country has opted for following a selective credit control measures with expansionary credit policy to essential sectors and contractionary policies to luxury items. It has been following 'free-float currency' policy which appears to be a mere luxury with both export and import sectors of the country suffering from structural rigidities. Free float of Bangladesh currency along with erosion of dollar vis-a-vis other currencies...
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...Bangladesh Economy Bangladesh is located in South Asia and shares its borders with India. It is the seventh most populous country in the world and is mostly densely inhabited. The poverty level, however, has fallen by more than 20%, helped by its prominent agricultural sector. The Bangladeshi economy is helped by its big garment sector, which contributes more than two-thirds of the country’s trade. The major challenge to prosperous growth is the vulnerability of the land to cyclones and floods. However, even with such challenges, Bangladesh has experienced a growth rate of 5% since 1990. This growth has been helped by remittances from expatriates as well. Bangladesh’s economy is characterized as poor and developing, despite several improvement efforts at the national and international levels. In 2008, the per capita income of the country stood at US$520, while the world average is $10,200. As of 2009, Bangladesh had an estimated population of 162,221,000 people. The literacy rate in the country is about 41%. The poverty rate is very high. However, over the years, there has been considerable improvement in the poverty level as well as health and education levels. Over 50% of Bangladesh’s GDP comes from the service sector. Despite this, two-thirds of the country’s population is engaged in agricultural activities, with most of them growing paddy. Bangladesh Economy: Major Constraints Here are some of the major impediments to the growth of Bangladesh’s economy: ...
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...Economic structure and growth When the Europeans set up trading posts around the area of Bangladesh, the British dominated the region. As such, Bangladesh was part of British India until the region was split up into India and Pakistan in 1947. Pakistan was comprised of West Pakistan (current Pakistan) and East Bengal (current Bangladesh. This awkward arrangement of a two-part country with its territorial units 1,600 km apart left the Bengalis marginalized and dissatisfied. In 1971, East Bengal separated from Pakistan and was renamed Bangladesh. Ever since, economic development has been very slow, hampered by political turmoil. It is one of the poorest countries in the world with nominal GDP per head of only USD 1,483 and 36% of the population living below the poverty line of USD 1 per day. The low level of human development is also reflected in the UN’s human development index, which ranks Bangladesh 146th out of 182 countries. Economic development is also hampered by a high vulnerability to inundations. Each year, about a third of the country is flooded during the annual monsoon rains. This severely affects the agricultural sector, washing away crops. While the agricultural sector is not especially important in terms of economic size, since it accounts only for 18% of GDP, it employs 45% of the country’s labor force. The industrial sector contributes 29% to GDP and within this sector the textiles and garment sector is a key growth driver. Unfortunately, the industrial sector...
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...Monetary Policy of Bangladesh Lecture Synopsis: 2 NSU, MBA Program Dr. Salehuddin Ahmed(Sld) BUS 530 (Section – 1 & 2); SPRING, 2013 Introduction Both in developed and developing economies, monetary policy seeks to maintain price stability accompanied by sustained stable output growth in the face of internal and external shocks that are faced from time to time. For developing economies like Bangladesh with significant underemployment/under exploitation of production factors, stimulating higher growth is imperative for rapid reduction and eventual elimination of endemic poverty, and is therefore an overriding priority. The stimulus provided by monetary policy in accommodating the growth aspirations must not however jeopardize macroeconomic stability and future growth; and the pursuit of monetary policy comprises of various supportive measures to attain the highest sustainable output growth while adjusting smoothly to internal and external shocks that the economy encounter from time to time. History and Objectives of Bangladesh Monetary Policy Objectives of the monetary policy of the Bangladesh Bank as outlined in the Bangladesh Bank Order, 1972 comprise of attaining and maintaining of price stability, high levels of production, employment and economic growth. In the decades of seventies and eighties, monetary policy in Bangladesh was conducted with full direct control on interest rates and exchange rates, as also on the volumes and directions of credit flows...
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...References: 11 Introduction: GDP is the total market value of all final goods and services produced in a country in a given year.GDP can be stated in two forms: Current price and constant price. Nominal GDP or GDP at current measures the value of output of a given by using the prices of that particular year. Where Real GDP or GDP at constant price shows the value of all output of a given year expressed in base year prices (according to Bangladesh economic review 2010 the base year is consider to be 1995-96). GDP is a key indicator of macroeconomic and increased in GDP is consider to very desirable because it generates higher income and lower unemployment and Government borrowing. Though global economy experienced an unparallel financial crisis, the Bangladesh Bureau of Statistics (BBS) estimated GDP growth of 5.83% for the financial year 2009-10. MTMF consider a growth of 6 percentage due to positive trend in export earning, a rose in production of aman and boro, increase in agriculture and industrial credit and finally the growth of imports of capital machinery and industrial raw materials. We will examine how increase in broad agriculture and service sector and increase in sub sectors of industrial sector lead to a positive growth in GDP at current market price. (According to BER GDP at market price is estimated TK 47405 which is 11.21% higher than GDP per capita of FY 2008-09). Moreover with a table of average change in the GDP (both current and constant), change in...
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...Revenue Mobilisation and Economic Growth Bangladesh Economic Update November 2013 Bangladesh Economic Update Volume 4, No. 11, November 2013 Acknowledgement Bangladesh Economic Update is a monthly publication of the Economic Policy Unit of Unnayan Onneshan, a multidisciplinary research organisation based in Dhaka, Bangladesh. A team works under the guidance of Rashed Al Mahmud Titumir, comprising Shahida Pervin and Abid Feroz Khan. © Copyright: Unnayan Onneshan The content of this publication may be reproduced for noncommercial purposes with proper citation (please send output to the address mentioned below). Any other form of reproduction, storage in a retrieval system or transmission by any means for commercial purposes, requires permission from the Unnayan Onneshan. For orders and request, please contact: UNNAYAN ONNESHAN 16/2, Indira Road, Farmgate Dhaka-1215, Bangladesh Tell: + (880-2) 8158274, 9110636 Fax: + (880-2) 8159135 E-mail: info@unnayan.org Web: www.unnayan.org Bangladesh Economic Update, November 2013 Page | 2 1.INTRODUCTION This issue of Bangladesh Economic Update probes into the tax system of Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue. This issue of Bangladesh Economic Update probes into the tax system of Bangladesh in the backdrop of falling investment, missing revenue target and growing pressure on revenue. Bangladesh has comparatively lower tax to GDP ratio, even compared to most of its...
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...Bangladesh on its way to become a middle-income country by 2021 Essay Contents: 1. Introduction : 2. Classification of Countries and What is Meant by MIC: 3. Significance of Becoming a MIC, for Bangladesh : 4. Predictions on Bangladesh Becoming a MIC( International and National Sources ) : 5. Experience of Countries Moving from Low income to Middle Income Status : 6. Recommendations for Bangladesh to Become a MIC : 7. Becoming a MIC( Three Possible Scenarios) : 8. Conclusion : Essay Materials: sHoVoN Still a way to go for a middle-income Bangladesh Author: Fahmida Khatun, CPD Bangladesh’s recent graduation to the World Bank’s lower-middle-income category from a low-income category was only a matter of time. The country experienced steady growth in the 2000s and boosted its per capita income. Its from a mere...
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