The Bangladesh Economy: Navigating the Turning Point

Basu, Kaushik

doi:10.1162/inov_a_00281

Cited by 3 publications

(3 citation statements)

References 12 publications

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“…The recent economic turmoil due to declining exports and remittances, and fuelled further by high energy prices, contains a clear message. Reaching the next level of development will require new structural improvements (Basu, 2021; World Bank, 2022).…”

Section: Discussionmentioning

confidence: 99%

“…Others highlight the important role of FDI (Kee, 2015;Rhee, 1990), remittances (Siddique & Billah, 2012;Uddin et al, 2022), infrastructure (Ahamad & Nazrul Islam, 2011;Khandker et al, 2009), and female empowerment, as well as broader social progress (Ahmed & McGillivray, 2015;Asadullah et al, 2014;Islam & Pakrashi, 2020). More policy-oriented and opinion pieces have echoed the importance of the latter (e.g., Basu, 2018Basu, , 2021 and put it in the broader macroeconomic context of public service provision (Subramanian, 2021). Studies such as Zhang et al (2014) and Emran and Shilpi (2018) investigate aggregate productivity from a structural change perspective, while Fernandes (2008) and Menzel (2021) focus on the firm level.…”

Section: Liter Ature Re Vie Wmentioning

confidence: 99%

“…For example, the opening of the Bangabandhu bridge in 1998 connected Dhaka to northern Bangladesh and spurred commerce. Basu (2021) highlights the importance of the telecom sector as a growth contributor. Having got going in the late 1990s, the sector has flourished further during more recent periods.…”

Section: Trade and Fdi Macro And Finance Infrastructure Demography Po...mentioning

confidence: 99%

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Good enough for outstanding growth: The experience of Bangladesh in comparative perspective

Beyer,

Wacker

2023

Development Policy Review

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Motivationangladesh's economic growth rate over the past three decades has been one of the highest in the world. This success is difficult to reconcile with a single macroeconomic explanation of development.PurposePrevious studies have investigated individual aspects that can explain Bangladesh's successful development. But a consistent account of how individual factors contributed to growth is currently missing. Can factors that correlate with growth in other countries explain the outstanding growth performance of Bangladesh? Or is the country's experience unique?Methods and approachWe construct a panel data set for 149 countries since 1970 and combine growth regression techniques with a peer group comparison. Different specifications, subsamples, and estimation techniques are considered.FindingsFactors correlating with growth in other countries can well‐explain the growth experience of Bangladesh. But two features are specific to the country. First, a combination of “good enough” policies led to considerable growth impulses from 1990 to 2005: the country's improvements in typical correlates of growth during this period were among the global top 5% for any 15‐year period investigated. Second, despite the absence of major reforms after 2005, Bangladesh defied the mean reversion in growth rates that most fast‐growing economies and peer countries experience.Policy implicationsOur results support the idea that a combination of “good enough” policies can jumpstart high growth in low‐income countries. Our findings further demonstrate that a stable macroeconomic and institutional environment helps to reap benefits of structural improvements in the long run.

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Section: Discussionmentioning

confidence: 99%