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An analysis of the determinants of the long-run growth rate of Bangladesh

B. Bhaskara Rao, Gazi Hassan

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Abstract

This article develops a framework to analyse the determinants of the long term growth rate of Bangladesh. It is based on the Solow (1956) growth model and its extension by Mankiw et al. (1992) and follows Senhadji's (2000) growth accounting procedure to estimate Total Factor Productivity (TFP). Our Growth Accounting Exercise (GAE) shows that growth rate in Bangladesh, until the 1990s was primarily due to factor accumulation. Since then, however, TFP has made a small positive contribution. Using our results on the determinants of TFP, we also examine policy options to double per capita income of Bangladesh in about 15 years.

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What this paper is about

This article develops a framework to analyse the determinants of the long term growth rate of Bangladesh. It is based on the Solow (1956) growth model and its extension by Mankiw et al. (1992) and follows Senhadji's (2000) growth accounting procedure to estimate Total Factor Productivity (TFP). Our Growth Accounting Exercise (GAE) shows that growth rate in Bangladesh, until the 1990s was primarily due to factor accumulation. Since then, however, TFP has made a small positive contribution. Using our results on the determinants of TFP, we also examine policy options to double per capita income of Bangladesh in about 15 years.

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OpenAlex reports 20 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This article develops a framework to analyse the determinants of the long term growth rate of Bangladesh. It is based on the Solow (1956) growth model and its extension by Mankiw et al. (1992) and follows Senhadji's (2000) growth accounting procedure to estimate Total Factor Productivity (TFP). Our Growth Accounting Exercise (GAE) shows that growth rate in Bangladesh, until the 1990s was primarily due to factor accumulation. Since then, however, TFP has made a small positive contribution. Using our results on the determinants of TFP, we also examine policy options to double per capita income of Bangladesh in about 15 years.

Key concepts: Total factor productivity, Economics, Growth accounting, Econometrics, Per capita income, Growth rate, Macroeconomics, Productivity

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