Department of Economics and Banking

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Causes and Consequences of Rural- Urban Migration in Bangladesh: An Empirical Study in Chittagong City
(Centre for Research on Islamic Management and Business, 2013-12) Uddin, Md. Nezum; Firoj, Mahamuda
Migration is a natural process where normally surplus manpower released from the rural sector is needed for urban industrial growth. This study aims at throwing light on central characteristics of migrants, determining factors and consequences of rural-urban migration in the context of Chittagong city, Bangladesh based on a survey of 100 randomly selected migrants and their families. From the dataset, it is found that poverty, job search, landlessness, homelessness, various natural disaster are the main push factors for rural out migration, while easy access to informal sectors and slum area, higher income probability, better service facilities are the main pull factors behind migration. The ordinary least square technique is applied on three regression models which indicate the determinants of income of migrants before and after their migration, change of income after migration. Reducing disparities between rural and urban areas should receive in urgent attention to stabilize the rural out migration.
Rationalizing the Choice of Housing on Cultivable Land: Is Cash-Return the Only Determinant?
(Journal of Social and Development Sciences, 2013-12) Saha, Pronab Kumar; Ahmed, Zobayer
Society faces numerous problems due to high population growth where housing along with other settlements is a notable concern. Horizontal expansion of housing on cultivable land in rural area reduces the availability of land for cultivation. The study is a combination of both quantitative and qualitative in nature based on primary data, carried out in a village in Comilla, an eastern district of Bangladesh during April 2012. The study finds that the households receive returns both in cash as well as in kind from new homesteads made on cultivable land. The cash benefit received by households at new place is Tk. 156238.14 on an average per year in 2011 price and on an average the cash investment per year in 2011 price (inflation adjusted) for housing is Tk. 213108.1818 (weighted average). This clearly indicates a cash loss from housing on cultivable land from household’s perspective. However, statistically the cash investment for housing in rural area is not significantly different from the cash return received by the households at 5% level of significance. Thus it becomes an important question whether the household’s choice of making new home on cultivable land is a rational choice or not. Further, the amount of money each household spent for housing could have been used for a higher cash return through some alternative investments. The study reveals, households derive positive utility (non cash returns) from new homes notwithstanding cash loss and other investment options forgone. The study further argues that if the government or any authority is to take some steps regarding the declining trend of cultivable land in rural areas, the perspectives of the households must be considered with great attention.
Dividend Announcement of the Commercial Banks in DSE: Scenario and Effect on Stock Price
(Centre for Research on Islamic Management and Business, 2014-06) Uddin, Md. Nezum; Uddin, Mohammed Jashim
In this study we have tried to show the dividend scenario of the listed commercial bank of Dhaka Stock Exchange (DSE) from the fiscal year 2000 to 2013. The study also tried to investigate the effect of dividend announcement on stock prices based on the 28 DSE listed commercial banks. In this context declaring dividends during the fiscal year 2012-2013 have been considered as the observation period and event study methodology has been used. The result by using event study methodology indicates that there is no effect of dividend announcement on stock prices over the observation periods.
Economic Rationalism and Consumption : Islamic Perspective
(Centre for Research on Islamic Management and Business, 2014-12) Hossain, Basharat
This paper presents a comparative view of Islamic economic rationalism and consumption framework to its counterpart’s conventional capitalist and socialist economic system. In conventional economic system, only self-interest and rationality of the consumer is the main principle to maximize utility whereas moral, religious, national, historical, cultural and social values are absent here. Consequently, the consumers enjoy sovereignty with little or no intervention of regulatory authority to maximize the utility. On the contrary, Islamic economic system designs its rationality and consumption principle in moderation that is far away from extremism where freedom and regulation is moderately recognized. Therefore, Islamic rationality encourages the consumers to maximize his utility by insuring religious, national, historical, cultural and social values. Besides, conventional economics have no treatment to immoral activities of consumer while Islamic economics derived from the Holy Quran and Hadith offers rewards and punishments for moral and immoral activities in worldly and hereafter life.
Malaysia’s Experience with Poverty Reduction : Lessons for Bangladesh
(Centre for Research on Islamic Management and Business, 2014-12) Haque, Md. Shariful; Islam, Md. Aminul; Bakar, Rosni
Malaysia is experiencing a prominent and promising economic rise and has set many instances of development of not only social enterprises but also a total development. This paper is penned with a view to approaching some facts and figures concerned to the Development Policy of Malaysia, and then to furnish some policy prescriptions for the development of Bangladesh. This is all through a conceptual paper where the review of relevant literatures has been made. It has been evidenced that, in 37 years, poverty incidence has dropped about 48.4%. Not only that, the incidence has come down at 1.7% in 2012 in peninsular Malaysia when it was 49.3% in 1970. The number of poor households diminished from 1.6 million in 1970 to about 574,000 in 1990 and 228,400 in 2009. The decline in poverty incidence was considerably contributed by high and sustained economic growth during the period, which averaged 6-7% per annum. Some industries, particularly Tourism, have inspired many Malaysians to convert their houses into sales centers. Well framed policy, Political goodwill and stability, Well round trade-offs made many impossible possible in Malaysia.
Criticisms of Coase Theorem: Can Ethical Strength of the Parties Ensure Efficient Resource Allocation?
(Centre for Research on Islamic Management and Business, 2016-06) Ahmed, Zobayer
Ronald Harry Coase (1910–2013), a British economist and author in his famous Coase Theorem states, „As long as private property rights are well defined under zero transaction cost, exchange will eliminate divergence and lead to efficient use of resources or highest valued use of resources.‟ The theorem has greater implications to internalize the externalities through market mechanism. However, the theorem has been criticized by environmental economists since the fundamental flaws of the theorem lie under the invalidity of its assumptions in the reality. Specially, in the presence of environmental externality, the assumptions of the theorem are not valid. This paper focuses on the role of parties in transaction where environmental externality exists, from the perspective of Islamic ethics. The paper argues, in the presence of negative externality where the assumptions of Coase Theorem are not applicable, the internalization of externality can still be possible without any government intervention. Such internalization is related to the ethical strengths of the parties involved in the environmental pollution. The paper further argues, the efficiency of resource utilization is positively related with the ethical strength of the parties in the market.
Criticisms of Coase Theorem: Can Ethical Strength of the Parties Ensure Efficient Resource Allocation?
([International Journal of Ethics in Social Sciences, 2016-06) Ahmed, Zobayer
Ronald Harry Coase (1910–2013), a British economist and author in his famous Coase Theorem states, As long as private property rights are well defined under zero transaction cost, exchange will eliminate divergence and lead to efficient use of resources or highest valued use of resources.‟ The theorem has greater implications to internalize the externalities through market mechanism. However, the theorem has been criticized by environmental economists since the fundamental flaws of the theorem lie under the invalidity of its assumptions in the reality. Specially, in the presence of environmental externality, the assumptions of the theorem are not valid. This paper focuses on the role of parties in transaction where environmental externality exists, from the perspective of Islamic ethics. The paper argues, in the presence of negative externality where the assumptions of Coase Theorem are not applicable, the internalization of externality can still be possible without any government intervention. Such internalization is related to the ethical strengths of the parties involved in the environmental pollution. The paper further argues, the efficiency of resource utilization is positively related with the ethical strength of the parties in the market.
Causal Relationship Between Foreign Direct Investment And Capital Flight: A Case Study of Bangladesh
(Centre for Research on Islamic Management and Business, 2016-12) Uddin, Mohammed Jashim; Yousuf, Md.
The fundamental aim of this study is to investigate the relationship between Foreign Direct Investment (FDI) and Capital Flight (KF) of Bangladesh. To obtain the objective, this paper has conducted statistical analyses and examined time series data over a period of Forty one years from 1973 to 2014. Unit root test and Granger causality test were exercised to measure the relationship between independent variable (FDI) and dependent variable (KF). The results found in this paper signify a positive correlation between FDI and Capital Flight and may be a concern and significant for the government of Bangladesh. The government might focus on required reforms and policy implications to make foreign investment more beneficial.
The Causes and Consequences of Rural Urban Migration in Bangladesh : A Review of the Relevant Literature
(Centre for Research on Islamic Management and Business, 2017-06) Firoj, Mahamuda; Rosni, Bakar
This study aims at reviewing the existing theories and studies of rural urban migration which explore the causes and consequences of rural urban migration of a developing country like Bangladesh. According to most of the relevant studies of rural urban migration poverty, joblessness, homelessness, landlessness, economic degradation, mal adjustment of the community, river erosion and various natural calamities are the major push factors in migration process. Although pull factors are not so dominant, easy access of informal sector, higher income earning possibility, better service facilities, and bright city lights attracted people to make a settlement in the urban areas. Depending on reviewed document, the significant consequences of migration are crate employment and cash earning, enjoying some civic amenities, overcrowding, difficulties of waste disposal, shortage of housing, inadequate educational facilities, poor water and power supply, traffic congestion and environmental degradation.
User Perception Of Mobile Banking Adoption: An Integrated Ttf-Utaut Model
(Journal of Internet Banking and Commerce, 2017-12) Ahmed, Zobayer; Kader, Abdul; RASHID, Harun Ur; Nurunnabi, Mohammad
This study investigates the factors influencing users’ perception on adoption of mobile banking (mBanking) services in Bangladesh from the understanding of technology perception. Exploratory factor analysis (EFA) has used as an instrument to analyze the data collected from the respondents. The established framework of integrating the task technology fit (TTF) and the unified theory of acceptance and usage of technology (UTAUT) have been applied to examine users' perception and intention in adopting mBanking services. The study shows that the most influencing factor is Social influence (SOI) in adopting mBanking. Besides, Task-technology fit (TTF), Technology characteristics (TEC), Performance expectancy (PEE), Facilitating conditions (FAC), Task characteristics (TAC), and User adoption (USE) have great influence on users’ perception and attitude towards mobile banking services. The findings of this research show a useful understanding to the decision makers to implement and develop mBanking service and help to know how it affects users’ attitude, perceptions and intention. This research provides a highlight to understand the users’ perceptions about the adoption of mBanking in Bangladesh. It emphasizes greatly on the social influence from the users understanding toward adopting mBanking services and new technologies that have been a part of modern life style.
User Perception of Mobile Banking Adoption: An Integrated Ttf-utaut Model
(Allied Academies, 2017-12) Ahmed, Zobayer; Kader, Abdul; Rashid, Md. Harun Ur; Nurunnabi, Mohammad
This study investigates the factors influencing users’ perception on adoption of mobile banking (mBanking) services in Bangladesh from the understanding of technology perception. Exploratory factor analysis (EFA) has used as an instrument to analyze the data collected from the respondents. The established framework of integrating the task technology fit (TTF) and the unified theory of acceptance and usage of technology (UTAUT) have been applied to examine users' perception and intention in adopting mBanking services. The study shows that the most influencing factor is Social influence (SOI) in adopting mBanking. Besides, Task-technology fit (TTF), Technology characteristics (TEC), Performance expectancy (PEE), Facilitating conditions (FAC), Task characteristics (TAC), and User adoption (USE) have great influence on users’ perception and attitude towards mobile banking services. The findings of this research show a useful understanding to the decision makers to implement and develop mBanking service and help to know how it affects users’ attitude, perceptions and intention. This research provides a highlight to understand the users’ perceptions about the adoption of mBanking in Bangladesh. It emphasizes greatly on the social influence from the users understanding toward adopting mBanking services and new technologies that have been a part of modern life style.
Islamic Microfinance and Sustainable Development Goals in Bangladesh
(Centre for Research on Islamic Banking & Finance and Business, 2018) Rashid, Md. Harun Ur; Uddin, Mohammed Jashim; Zobair, Shah Asadullah Mohd.
The main objective of this study is to explore the Islamic Microfinance Instruments in achieving the Sustainable Development Goals (SDGs) in Bangladesh. The methodology of this study is based on secondary data including existing relevant literature, and annual reports of different financial institutions. The findings of this study show that Islamic microfinance institutions have a broader scope to attain SDGs through their various investment modes.The study categorizes the Islamic microfinance instruments into four broadly parts which are profit and loss sharing financing, non-profit & loss sharing financing, Islamic social enterprise based financing and charity based financing which have a positive effect to the real sector of the sustainable economy that will lead towards achieving SDGs. The Islamic Microfinance institutions are continuing their efforts in attaining SDGs through their various products. With growing the potentiality, Islamic microfinance has both direct and indirect impacts on ensuring economic development, environmental sustainability, and social inclusion by creating employment opportunity, spreading knowledge and skills, making self-dependent, protecting from adverse effects. The paper also tries to put recommendations to reduce the challenges of Islamic microfinance acting as impediments to achieving the SDGs.
Predicting the Stock Market Efficiency in Weak Form: A Study on Dhaka Stock Exchange
(EconJournals, 2018) Pervez, Masud; Rashid, Md. Harun Ur; Chowdhury, Md. Asad Iqbal; Rahaman, Mahbubur
This study aims to examine the efficiency of Dhaka Stock Exchange (DSE) in the weak form using random walk model of Efficient Market Hypothesis (EMH) based on daily return series. The study applies both non-parametric (Kolmogorov–Smirnov test with Lilliefors coefficient, run test) and parametric test (autocorrelation test, unit root test and variance ratio test) on DSE general index, DSE broad index (DSEX) and DSE30 index ranging from June 1, 2004, to March 18, 2018. The results of the study show that the normality test and unit root test reject the null hypothesis of randomness while the result of the run test shows that only the share prices of DSE30 index follow the random walk out of three indices. Besides, the return series of DSE broad index show some signs in favour of randomness by autocorrelation test and the returns of DSE general index support the efficiency concerning variance ratio test under both homoscedastic and heteroskedastic assumptions. The overall results of the study show inefficiency of DSE in the weak form which means the investor has a chance to make an abnormal profit predicting the historical data. This study also provides valuable insight to the shareholders, investors, the board of directors and regulatory bodies.
Circular economy model for developing countries: evidence from Bangladesh
(by Elsevier Ltd., 2018-05) Ahmed, Zobayer; Mahmud, Sakib; Acet, Hakan
From environmental and sustainable development perspective, circular economy model is rarely applied in developing countries compared to developed nations. The aim of this paper is to review the overall scenario of the circular economy (CE) model in Bangladesh toward sustainable development. The study relies on the descriptive analysis of both qualitative and quantitative data, collected mostly from secondary sources with some in-depth interviews of the experts in the relevant field. The overall environmental status of Bangladesh, prospects, prac- tices, and challenges of the circular economy model were thoroughly discussed in this paper. Though there are prospects to switching towards CE, the study reveals that the CE model's applicability is very limited in Bangladesh, being exercised mostly through recycling processes in some industries. Most importantly, we attempted to explore what is holding the CE practice in Bangladesh back, and iterated some policy, technical, and public participation barriers existing in Bangladesh. This paper will benefit the policymakers in developing countries in general and Bangladesh in particular to look more into the matter and hope to present ideas for future researchers to work on the idea of CE in the context of particular sectors and subsectors of Bangladesh.
Blue Economy of Bangladesh: Opportunities and Challenges for Sustainable Development
(Advances in Social Sciences Research Journal, Society for Science and Education, United Kingdom, 2018-08-25) Islam, Md. Khairul; Rahaman, Mahbubur; Ahmed, Zobayer
The blue economy refers to the economic activity based on maritime resources. The paper aims to explore the current scenario of sea resources of Bangladesh. Using secondary data, the study reveals that Bangladesh can accelerate its economic growth through the sustainable use of the sea resources. Moreover, Bangladesh has 710 km long coastline with 200 Nautical Miles of an exclusive economic zone inside the Bay of Bengal. Marine fisheries contribute 19.4% of the total fish production of the country. Besides, the western coastline of Cox’s Bazaar is the longest sea beach in the planet that is visited by on an average, 81% of the international tourists arrive in Bangladesh. However, due to lack of institutional capacity and given the socio-cultural context, the sustainability of the sea resources is now facing critical threats. Apart from studying the present status of sea resources, the paper proposed some way forwards based on existing opportunities and challenges for promoting sustainable development in Bangladesh
Effect of military expenditure on economic growth: evidences from India Pakistan and China using cointegration and causality analysis
(Asian Journal of German and European Studies, Springer open, 2019-06-21) Raju, Mohammad Hasan; Ahmed, Zobayer
The study revisited the existing evidences of India Pakistan and China with updated data on the effect of military expenditure on economic growth. Econometric approaches analyzed the short and long run relationship between GDP growth and Military expenditure. Empirical studies have been done using cointegration analysis and causality test to justify the relationship and causality of the variables. Interestingly, study obtained positive log-run relation, no short run relationship and unidirectional long run causality in every cases, but for different degrees of relationship. Obtained results are robust and passed necessary diagnostic tests significantly
Exploring the Relationship between Customer Loyalty and Financial Performance of Banks: Customer Open Innovation Perspective
(Journal of Open Innovation: Technol. Mark. Complex., 2020-10-09) Rashid, Md. Harun Ur; Nurunnabi, Mohammad; Rahman, Mahfuzur; Masud, Md. Abdul Kaium
Abstract: In the age of technology, continuous innovation is the ultimate motto of the financial sectorto attract customers. Firms in the financial sector must be innovative in terms of service quality and operational performance to obtain customer loyalty and gain financial stability. A dearth of studies on customer loyalty and financial performance of Islamic Banks motivated the authors to examine the relationship between customer loyalty and financial performance. The study also explores whether the service qualities have any impact on customer loyalty. The study uses both primary and secondary data to conclude the research objectives. A survey of 356 questionnaires was carried out among the customers of the selected Islamic banks of Bangladesh to gather information regarding customer service quality and customer loyalty, while financial performance data were attained from the annual reports. Moreover, the study follows the SERVQUAL model’s five dimensions (tangibles, empathy, assurance, reliability, and responsiveness) to determine the service quality of Bangladeshi Islamic Banks. Rigorous statistical techniques, including exploratory factor analysis, reliability testing, and regression analysis were used to investigate the hypothesis. The study empirically documents a positively significant impact of service quality (tangibles, empathy, reliability, and responsiveness) on customer loyalty, while assurance shows an insignificant relationship. Furthermore, the study does not find any significant relationship between customer loyalty and the financial performance of Bangladeshi Islamic Banks. The findings of the study profoundly denote that the financial performance of Bangladeshi Islamic Banks mostly depends on many other financial and non-financial factors, rather than customer loyalty
Public Expenditure and Economic Growth Relationship in Developing Countries: The case of Bangladesh
(Journal of Current Researches on Business and Economics,, 2020-10-15) Ahmed, Zobayer; Acet, Hakan
This analysis empirically focuses on how government spending affects economic development in Bangladesh. The study uses time-series data from 1965 through 2016 from the World Development Indicators for independent variables household consumption expense, capital formation and public sector consumption spending. The Johansen co-integration test showed a long-run association among the variables. However, OLS results show that capital formation and household consumption expenditure positively and public sector consumption spending negatively affect Bangladesh's GDP. A more productive investment by the government sector may reduce government spending's adverse effects on Bangladesh's GDP
Firms’ Characteristics and Tax Evasion
(2021) Rashid, Md. Harun Ur; Morshed, Anika
The study investigates whether the firms’ characteristics, including ownership structure, audit, and famil-iarity affect tax evasion. The study has used the ordinary least square (OLS) to analyze cross-sectional data of 85 countries between 2007 and 2015 collected from the world enterprise survey. The study finds that the domestic, foreign, and government ownership in the firm increases tax evasion, whereas proprietorship and female ownership decreases the tax evasion. Further, the results show that familiar firms with international recognition are less inclined to evade tax. Similarly, the negative relationship between audit and tax evasion implies that the government should make it compulsory to check the financial statements of the firms by the external auditors, which, in turn, reduces the firms’ tax evasion.Moreover, the firms that face more financial constraints evade more tax than the firms with access to the bank loan and solvent ones. The tax authorities should also consider reducing the corporate tax rate as the higher tax rates stimulate the firms to evade more tax.
Environmental Kuznets Curve (EKC) for Bangladesh: Evidence from Fully Modified OLS Approach
(Journal Of Emerging Economies and Policy, 2021-03) Rahman, Mohammad Mahbubur; Enayet Karimb, Abu Ansar Mohammad; Ahmed, Zobayer; Acetd, Hakan