Aggregate Consumption Expenditure and Economic Growth: Evidence from Bangladesh

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Aggregate Consumption Expenditure and Economic Growth: Evidence from Bangladesh

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Abstract

This paper attempts to investigate the relationship between aggregate consumption expenditure and economic growth of Bangladesh using the ARDL Bounds Test approach. The study reveals that consumption expenditure and GDP have a significant impact on each other. Granger non-causality test also has been carried out, and the test reveals that unidirectional causal relationship is running from aggregate consumption expenditure to GDP. Bilateral causality exists between GDP and capital investment. The findings suggest that consumption enhancing fiscal and monetary policies can also boost the economic growth in the context of Bangladesh. That’s because Bangladesh is still operating on the relatively flatter part of its longrun supply curve.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Sima Rani Dey, Mohammed Tareque. 2018. "Aggregate Consumption Expenditure and Economic Growth: Evidence from Bangladesh". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 18 (GJMBR Volume 18 Issue B5).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-B Classification JEL Code: F43
Version of record

v1.2

Issue date
July 30, 2018

Language
English
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Aggregate Consumption Expenditure and Economic Growth: Evidence from Bangladesh

Sima Dey
Sima Dey Bangladesh Institute of Governance and Management
Mohammed Tareque
Mohammed Tareque <p>Bangladesh Institute of Governance and Management</p>