Nexus Between Exports, Remittances, FDI, and Economic Growth in Bangladesh: A Structural Break ARDL Bounds Test Approach
Project Description:
This project investigates the long-run relationship between exports, remittances, foreign direct investment (FDI), and economic growth in Bangladesh using annual data from 1976 to 2019. The study applies the Autoregressive Distributed Lag (ARDL) model and accounts for structural changes in the economy using structural break analysis. It examines how exports, remittances, and FDI have influenced Bangladesh’s economic growth over time and assesses the impact of major policy reforms and external shocks on the growth process. The findings provide evidence that exports and remittances have been key drivers of economic growth, whereas FDI's contribution has been constrained by structural and institutional challenges. By identifying these long-term relationships, the study offers policy recommendations to promote export diversification, improve the productive use of remittances, attract more efficient FDI, and support sustainable economic growth in Bangladesh amid evolving global economic conditions. The project demonstrates the application of advanced time-series econometric techniques to generate policy-relevant evidence for economic development.
Engagement:
Working Paper:
https://cperbd.org/working-paper/3
http://dx.doi.org/10.2139/ssrn.5421498
Research Article:
Title: The remittance, foreign direct investment, export, and economic growth in Bangladesh: a time series analysis
DOI: https://doi.org/10.38039/2214-4625.1022