Globalization and Poverty: A Divisional Study on Bangladesh (1990-2010)

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Md. Amith
Md. Amith
1 World University of Bangladesh.

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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.

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Funding

No external funding was declared for this work.

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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.

Md. Amith. 2014. \u201cGlobalization and Poverty: A Divisional Study on Bangladesh (1990-2010)\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 14 (GJHSS Volume 14 Issue E3): .

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GJHSS Volume 14 Issue E3
Pg. 29- 47
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

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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.

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Globalization and Poverty: A Divisional Study on Bangladesh (1990-2010)

Md. Amith
Md. Amith World University of Bangladesh.

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