Title: Macroeconomic determinants hindering economic growth: a study of Bangladesh

Authors: Poonam; Ravinder; Vijender Pal Saini

Addresses: Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001 (Haryana), India ' Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001 (Haryana), India ' Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar-125001 (Haryana), India

Abstract: The study is an attempt to examine the determinants of the economic growth of Bangladesh during the timeframe 1991-2020. Two-unit root tests ADF and PP are used to examine the presence of the unit root in the series. The bootstrap ARDL approach is used to examine the long-run and short-run relationships among the variables. All selected variables are found stationary at the first difference except foreign aid and inflation. The results imply that some of the sample variables FDI, government expenditure, openness to trade, and overseas aid positively affect economic growth in the long-run. However, external debt has an adverse impact on growth in the short as well as long term. As a result, Bangladesh's policymakers should prioritise exports, foreign aid, and greenfield investments while reducing their reliance on external indebtedness.

Keywords: ARDL; Bangladesh; external debt; foreign direct investment; population; trade openness; human development.

DOI: 10.1504/IJICBM.2024.142602

International Journal of Indian Culture and Business Management, 2024 Vol.33 No.3, pp.371 - 383

Received: 25 Apr 2023
Accepted: 09 May 2023
Published online: 11 Nov 2024 *

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