An Analysis of Sectoral Contribution in GDP of Bangladesh
The paper is an attempt to identify the contribution of different sectors-agriculture, industry, export and remittances in GDP (Gross Domestic Product) of Bangladesh in simultaneous equations framework. For this purpose, a time series analysis is carried out with a data set from 1980 to 2013 using the Three Stage least Squares (3SLS) methods. After review of recent growth trends and development pattern, agricultural sector, industrial sector, export, remittances are found to have significant impact on Bangladesh economy. In this paper four variables- agricultural value added, industrial value added, export and remittances are analyzed as main components of the GDP and assessed to determine the relative contribution on GDP. Empirical findings of this study suggest that all sectors have significant contribution in GDP of Bangladesh. The result of the study implies export and industrial sectors are major contributor in economy. Remittances have less impact than other sectors. Again, simultaneous model estimation also indicates that Bangladesh economy have human capital, electricity and infrastructural shortcomings and should overcome these impediments in order to sustain and accelerate development path in future.
Keywords - Bangladesh, Economic reforms, Gross domestic product (GDP) Economic development, Economic growth