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IJSTR >> Volume 9 - Issue 6, June 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Road Transportation Infrastructure, Industrial Evolution And Economic Growth: Evidence From Bangladesh

[Full Text]



Md. Mehedi Zaman Mithun



Bangladesh, Road Transportation, Industrial Evolution, GDP, Economic Growth, ARDL, VECM



This paper sheds some light on the interaction among road transportation infrastructure, industrial evolution and economic growth in Bangladesh and further the study have worked out how they are interrelated by using Autoregressive Distributed Lag (ARDL) and Vector Error Correction Model (VECM) methods. Empirical findings in this study suggest that, economic growth is strongly co-integrated with industrial evolution and road transport infrastructure in Bangladesh, indicating the presence of long-run relationship among them. The study reflects a significant positive long-run impact of industrial evolution and a significant negative long-run impact of road transportation infrastructure on economic growth in Bangladesh. Further, the causality test confirms the presence of bidirectional causality between industrial evolution and economic growth in the short-run. But the study couldn’t find any causal effect flowing from road transportation infrastructure to economic growth & vice-versa. The policy recommendations of this study are straightforward. If Bangladesh needs to retain a stable and smooth economic growth, gradual improvement of road transport infrastructure and build up more industries alongside improve the efficiency of the industrial sector is urgently needed.



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