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Towards Constructing a Dynamic Model of Economics for Investigating Investment and Production in Bangladesh
International Journal of Economics, Finance and Management Sciences
Volume 5, Issue 2, April 2017, Pages: 98-101
Received: Nov. 24, 2016; Accepted: Dec. 17, 2016; Published: Jan. 26, 2017
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Author
Akram Hossain Md., Department of Economics, Rajshahi University, Rajshahi, Bangladesh
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Abstract
The main objective of this paper is to investigate how the per capita GDP growth rate reaches near about 7%. Bangladesh is treated asa role model of development. This is why it is analyzed in this article the relationship between gross domestic product and investments and proven on the basis of econometric models. Model of GDP determination is built on the basis of Solow model with the help of Cobb-Douglas production function. In order to calculate the effectiveness of attracting more investment into production in Bangladesh a dynamic econometric model constructed using Solow model. This model is estimated by OLS method for Bangladesh. The model shows a production function with decreasing return to scale. Despite this fact per capita GDP growth rate is near about 7%. It isthe constant or efficiency factor which is very high, it is 18.53. This is why the per capita growth rate is near about 7%.This is why Bangladesh reaches a lower middle income country and by 2041 it is likely to be a rich country.
Keywords
EPZ, Investment, Consumption, Capital Resources, Elasticity of Capital, the Main Production Funds, Human Resources, Dynamic Economic Model
To cite this article
Akram Hossain Md., Towards Constructing a Dynamic Model of Economics for Investigating Investment and Production in Bangladesh, International Journal of Economics, Finance and Management Sciences. Vol. 5, No. 2, 2017, pp. 98-101. doi: 10.11648/j.ijefm.20170502.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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