An Empirical Analysis of Interest Rate and Domestic Savings in Bangladesh

An Empirical Analysis of Interest Rate and Domestic Savings in Bangladesh

Hamida Begum

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An Empirical Analysis of Interest Rate and Domestic Savings in Bangladesh

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Abstract

The study investigates the relationship between deposit interest rate and gross savings in Bangladesh for the period 1976-2019. In this study, I used the ARDL approach to estimate the short run and long-run relationship between dependent and independent variables, which applicable if some variables are integrated of order one, and some are zero. The result of the study reveals that in the short-run impact of interest rate on gross saving is insignificantly negative, but in the long run this impact is insignificantly positive. The result also shows that both in the short-and the long-run, inflation and GDP positively impact the gross savings. Moreover, the impact of remittance on gross savings is positive in the short run and negative in the long run.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Hamida Begum. 2021. \u201cAn Empirical Analysis of Interest Rate and Domestic Savings in Bangladesh\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 21 (GJHSS Volume 21 Issue E4).

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GJHSS Volume 21 Issue E4

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification FOR Code: 149999

Submission ReceivedApril 10, 2021
Peer Review Double Blind
Handling Editor
Accepted May 2, 2021
Published May 15, 2021

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v1.2

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August 24, 2021

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