Title : An Econometric Analysis for Structural Change and Economic Growth of Bangladesh

Authors : Md. Sharif Hossain

Abstract : This paper surveys the economic literature for structural change and economic growth of Bangladesh, exhibits the stylised facts and conducts an econometric analysis. Economic transformation with rising per capita income appears to be a continuous process from agriculture to manufacturing and then from manufacturing to service according to Rostow (1956) and Kuznets (1957). Since the definition of services is nebulous as Bhagwati (1985) argued, so we primarily focus on the economic transformation from agricultural to manufacturing, i.e. industrialization associated with economic growth of Bangladesh. The main objectives of this empirical investigation on structural change and economic growth of Bangladesh are as, (i) to examine Boserup's notion (1965), that population pressure stimulates agricultural production which may encourage industrialization via technological progress, (ii) to empirically review Oshima's (1987) observations, that Bangladesh follows the pattern of Japan's pre-World War 2 economic development, (iii) to test the consequence of economic variables for the change of industrial structure. The Granger causality test is initially used to clarify to what extent these issues do fit. We moreover, examine the statistical association between the change of industrial structure i.e. industrialization and other macroeconomic variables by the regression analysis.

Journal : Kyushu Association of Economic Science Journal, Japan, Vol. 40, 205 - 216. Volume : 40 Year : 2002 Issue : `1
Pages : 205-216 City : Edition : Editors :
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