Saving mobilization and its impact on economic growth: a case study on Bangladesh

Rahman, Mohammad Mafizur and Uddin, Mohammad Taslim (2012) Saving mobilization and its impact on economic growth: a case study on Bangladesh. In: American Canadian Conference for Academic Disciplines 2012, 21-24 May 2012 , Toronto, Canada.

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This paper examines the role of saving in accelerating economic growth in Bangladesh and estimates a simultaneous equation related to this to assess the impact of various factors in determining savings and economic growth in Bangladesh with special emphasis on the impact of financial sector reforms initiated in the late 1980s. The findings reveal that the growth rate and real rate of interest have a positive impact on saving rate. Also the dummy variable (financial reform index) has a significant positive effect on saving rate indicating that the financial sector reform has ultimately enhanced saving rate in Bangladesh. Population per branch of scheduled banks, on the other hand, is negatively related to saving rate suggesting that increased availability of branches of banks can stimulate the saving tendency of people. Further, financial savings in turn, foreign direct investment and literacy rate positively affect the growth rate of the economy. Our findings also confirm the saving-growth simultaneity reflecting that saving and growth positively affect each other and go hand to hand.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Conference website: No evidence of copyright restrictions preventing deposit.
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 04 Jan 2013 05:09
Last Modified: 25 Jun 2017 23:59
Uncontrolled Keywords: saving mobilization; economic growth; Bangladesh
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
16 Studies in Human Society > 1605 Policy and Administration > 160505 Economic Development Policy
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910109 Savings and Investments

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