Globalization and Poverty: A Divisional Study on Bangladesh (1990-2010)
This paper investigates the nexus between economic aspect of globalization and poverty across the six key divisions of Bangladesh. Arguments are based on theories of dualistic development and structural transformation process in low income countries. In this model economic globalization of Bangladesh is measured by three major features which are trade of merchandise and services, FDI and remittance inflow. Additionally a control variable is taken which is population. So for this statistical panel regression is used i.e. fixed-effect model and random-effect model. The lack of data deficiency did not let us execute any statistical procedure to choose any specific model. In this paper both the model have uniform outcome. The empirical findings in both the model are consistent with conventional wisdom for remittance inflow. Population and trade have traditional affiliation with poverty, but statistically insignificant in both model. However the positive FDI link implies that it totally contradicts with normal norm. Then the emphasis is on dummy variable analysis. In the dummy variable analysis Dhaka division is excluded to get rid of the dummy variable trap and to make comparison with five other divisions. Each of the division has directly proportional relationship with poverty. Additionally it was found to be statistically significant apart from Khulna division. To conclude, the fruits from economic globalization are unequally divided across divisions.
