Department of Economics and Banking
Permanent URI for this collectionhttp://dspace.iiuc.ac.bd/handle/88203/241
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Item Revisiting inflation and growth nexus in Bangladesh: an asymmetric cointegration based on non-linear ARDL approach(Revista Finanzas y Politíca Económica,, 2021-07) Hossain, Mohammed Akter; Acet, Hakan; Ahmed, Zobayer; Majumder, AlauddinSustainable high economic growth is the major objective of a country. In contrast, inflation is a critical issue that alters economic development. For this, the growth-inflation nexus is one of the most controversial topics in this present world. This study re-investigates the link between inflation and the economic development of Bangladesh by applying a nonlinear autoregressive distributed lagged (NARDL) method. We utilize yearly time series data set on the growth rate of per capita GDP and the inflation rate for the time range from 1986 to 2017. Based on the NARDL approach, the asymmetric cointegration result confirms, between the GDP growth and inflation rates (CPI), a long-run integration exists. Between growth rate and inflation rate, the study finds a positive and robust nexus both in the long-run and in the short-run with statistically significant results. This study further explores an asymmetric relationship between the rate of inflation and the rate of economic growth. The nonlinear ARDL approach shows that the GDP growth rate responds more with an upward change in inflation than a downward change. Furthermore, the positive change in inflations has a significant and positive influence on the growth rate in the short run. Still, the effect of an adverse change in inflations has statistically insignificant. Both the policymakers of Bangladesh (Bangladesh Bank) and development partners working in the country can be benefited from these results in the context of policy implementation. To boost the economic growth in the context of Bangladesh, this study recommends that a moderate inflation rate can be treated as a significant determinationItem 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, HakanThis 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 GDPItem 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, HakanItem Privatization policy, entrepreneurship, and economic development: the dynamics in Bangladesh economy(Journal of Global Entrepreneurship Research, 2021-05-24) Uddin, Muhammad Salah; Ahmed, ZobayerBangladesh has been experiencing dual economic trends with and without the inclusive institution since its independence in 1971. The era of nationalization with limited property rights and a liberal economy with an inclusive institution have evolved the economic path of Bangladesh. The study aims to explore if the privatization matters for economic development through entrepreneurship and to find the outcomes of these two-policy shocks producing. The current study presented both trend analysis and econometric modeling using annual time series data from 1960 to 2017. Findings show that private property rights instigate private entrepreneurial activity more through higher GDP per capita, more capital formation, and imports of capital goods. Eventually, privatization contributes to the economic development of Bangladesh. The result of the study is new from the perspective of Bangladesh compared to the existing bulk of knowledge related to economic impacts of privatization, and thus the findings of the study are subject to offer impactful benefits to policymakers.Item Privatization policy, entrepreneurship, and economic development: the dynamics in Bangladesh economy(Journal of Global Entrepreneurship Research, 2021-05-24) Uddin, Muhammad Salah; Ahmed, ZobayerBangladesh has been experiencing dual economic trends with and without the inclusive institution since its independence in1971. The era of nationalization with limited property rights and a liberal economy with an inclusive institution have evolved the economic path of Bangladesh. The study aims to explore if the privatization matters for economic development through entrepreneurship and to find the outcomes of these two-policy shocks producing. The current study presented both trend analysis and econometric modeling using annual time series data from 1960 to 2017. Findings show that private property rights instigate private entrepreneurial activity more through higher GDP per capita, more capital formation, and imports of capital goods. Eventually, privatization contributes to the economic development of Bangladesh. The result of the study is new from the perspective of Bangladesh compared to the existing bulk of knowledge related to economic impacts of privatization, and thus the findings of the study are subject to offer impactful benefits to policymakersItem Investigating Okun‟S Law In SAARC Countries: An Ardl Approach(EUL Journal of Social Sciences, 2021-06) Hanif, Abu; Ahmed, Zobayer; Çevag, SavaĢThe aim of this paper is to test the applicability of Okun‟s law in SAARC (South Asian Association for Regional Cooperation) countries. It also intends to find the long-run association between unemployment rate and growth rate and investigate the impact of growth rate on unemployment in the South Asian Region. The study uses annual time series data for eight SAARC countries, from 1991 to 2017. To meet the objectives of the research, the graphical illustration of trend with descriptive statistics are followed by econometric analysis. Based on the stationarity of the variables, an autoregressive distributive lag (ARDL) model has been estimated to test the long- run relationship between unemployment and growth. The results indicate that per capita GDP negatively influences the unemployment rate in the long run only in three member countries of SAARC, namely- Afghanistan, India and Sri Lanka and in the South Asian Region in aggregate. This paper also finds a negative relationship between the growth rate and unemployment rate in Bangladesh, but this association is not statistically significant. The study doesn‟t find any negative relationship between the two variables in Bhutan, Maldives, Nepal and Pakistan. The study discovers the validity of Okun‟s law, but the attained Okun coefficient is less than that of the actual Okun coefficient, documented by Arthur Okun. Another substantial evidence is that the significance of the connection between the growth rate and unemployment rate varies among the SAARC countries. The main limitation of this paper is the unavailability of data for Afghanistan compared to other SAARC countries. This paper is unique as it tests the validity of Okun‟s law in every member country of SAARC and as a region of South Asia. To date, no such study like this has been found in the body of literature which finds long-run relationship in all SAARC countriesItem Revisiting inflation and growth nexus in Bangladesh: an asymmetric cointegration based on non-linear ARDL approach(Revista Finanzasy Politíca Económica, 2021-07-31) Acet, Hakan; Ahmed, Zobayer; Majumder, Alauddin; Hossain, Mohammed AkterSustainable high economic growth is the major objective of a country. In contrast, inflation is a critical issue that alters economic development. For this, the growth-inflation nexus is one of the most controversial topics in this present world. This study re-investigates the link between inflation and the economic development of Bangladesh by applying a nonlinear autoregressive distributed lagged (NARDL) method. We utilize yearly time series data set on the growth rate of per capita GDP and the inflation rate for the time range from 1986 to 2017. Based on the NARDL approach, the asymmetric cointegration result confirms, between the GDP growth and inflation rates (CPI), a long-run integration exists. Between growth rate and inflation rate, the study finds a positive and robust nexus both in the long-run and in the short-run with statistically significant results. This study further explores an asymmetric relationship between the rate of inflation and the rate of economic growth. The nonlinear ARDL approach shows that the GDP growth rate responds more with an upward change in inflation than a downward change. Furthermore, the positive change in inflations has a significant and positive influence on the growth rate in the short run. Still, the effect of an adverse change in inflations has statistically insignificant. Both the policymakers of Bangladesh (Bangladesh Bank) and development partners working in the country can be benefited from these results in the context of policy implementation. To boost the economic growth in the context of Bangladesh, this study recommends that a moderate inflation rate can be treated as a significant determination.Item Financial Development, International Trade and Economic Growth Nexus (1971-2016): Examining Bangladesh Perspective(Bangladesh Journal of Integrated Thoughts, 2022-05-25) Islam, Md. Shaidul; Faruque, Omar; Ahmed3, ZobayerStudies have examined economic growth mostly without inspecting the combined effect of international trade (IT) and financial development (FD). Considering Bangladesh's perspective, this study investigates the nexus of IT, FD, and economic growth. Time-series econometric data covering 1971-2016 are used. Econometric techniques that are used to meet the objectives are mainly the “Augmented Dickey-Fuller” for unit root test, “Johansen and Juselius” test for co-integration and popular VECM for checking long-run equilibrium relation and causality test. The exploratory findings of this study show that a long-run equilibrium relationship exists among the IT, FD and the growth of the economy. This study also finds unidirectional or one-way long-run causality from IT and FD to the economy's growth, and in the short-run, bidirectional causality is running from IT to Economic growth and Economic Growth to IT. Policies related to further FD and trade openness are suggested for accelerating the growth of Bangladesh economy.Item Firms’ Characteristics and Tax Evasion(2021) Rashid, Md. Harun Ur; Morshed, AnikaThe 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.Item Corporate Social Responsibility Disclosure and Firm’s Productivity: Evidence from the Banking Industry in Bangladesh(Sustainability, 2022-05-20) Zheng, Yubin; Rashid, Md. Harun Ur; Siddik, Abu Bakkar; Wei, Wei; Hossain, Syed ZabidSince the empirical evidence on the relationship between corporate social responsibility disclosure (CSRD) and firm productivity is scarce in the context of the banking industry, the study examines whether CSRD leads banks in Bangladesh to higher productivity. Using annual reportdata of all 30 banks listed on the Dhaka Stock Exchange in Bangladesh from 2011 to 2018, the study applied a data envelopment analysis (DEA) to determine the productivity of the sample banks, and then ordinary least squares (OLS) analysis to examine the impact of CSR on the banks’ productivity. Furthermore, the study utilized two-stage least squares (2SLS) and a generalized method of moments (GMM) to check the robustness of the findings amid the detection of endogeneity issues. The study also used several alternative variables to check and verify the reliability of the study. The findings indicate that the greater a bank’s contribution to CSR, the higher its productivity. However, banks with more debt to assets are less productive. Additionally, the study observed that the impact of CSRD on bank productivity is higher in GRI banks compared to non-GRI banks, non-politically connected banks as opposed to politically connected banks, and conventional banks compared to Islamic banks. The study provides valuable insight into how CSR activities can promote bank productivity, thus motivating the banks to execute a well-thought-out action plan to ensure more CSR contribution.This study is the first ever bank-level evidence that provides insight into how the patterns of CSR activity of publicly traded banks impact their productivity