Globalization and Economic Growth: The Case of Bangladesh

Abstract

Like many other countries Bangladesh also integrated its economy with the rest of the world through liberalization of its economy. This paper explores the effect of globalization on economic growth of Bangladesh in econometric approach where degree of openness and exchange rate are used as indices of globalization. The estimated results based on Autoregressive model shows that there is positive relationship between degree of openness and economic growth and the relationship between growth and exchange rate is negative. Though Bangladesh has liberalized its economy substantially but still balance of trade is in deficit because of our export sector is not strong. Estimated results also show employment has significant positive relationship to growth. So with global world consistently further liberalization should be undertaken.