Both the increase and the decrease of inflation rate (General Price level) are like a two side sharpened razor in an economy like Bangladesh. They both are harmful for an economy. Therefore, it has been attempted here to know about some experimented determinants of inflation. Moreover, in this respect a well-known econometric technique, namely, Autoregressive Distributed Lagged (ARDL) Model has been applied. By employing data series for 1972 to 2012, it has been indicated that the gross domestic product (GDPt), money supply (M2t), and interest rate (IRt) of current year of Bangladesh as well as previous year’s real exchange rate (RERt-1) and interest rate (IRt-1) have contributed to increase inflation in Bangladesh. It has also been noticed that current year’s real exchange rate (RERt) in Dollar and previous year’s money supply (M2t) have contributed to decrease the inflation rate. In our study, we emphasized on the significance of variables and availability of data because of which some important determinants like unemployment rate (Ut), remittance (REMt) and oil price (PPt) have been ignored in main model.
| Published in | Journal of World Economic Research (Volume 3, Issue 6) |
| DOI | 10.11648/j.jwer.20140306.13 |
| Page(s) | 83-94 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
ARDL Model, Diagnostic Test, Inflation Rate, Money Supply, Interest Rate, Real Exchange Rate
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APA Style
Samim Uddin, Md. Niaz Murshed Chowdhury, Dr. Mohammad Abul Hossain. (2014). Determinants of Inflation in Bangladesh: An Econometric Investigation. Journal of World Economic Research, 3(6), 83-94. https://doi.org/10.11648/j.jwer.20140306.13
ACS Style
Samim Uddin; Md. Niaz Murshed Chowdhury; Dr. Mohammad Abul Hossain. Determinants of Inflation in Bangladesh: An Econometric Investigation. J. World Econ. Res. 2014, 3(6), 83-94. doi: 10.11648/j.jwer.20140306.13
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Download@article{10.11648/j.jwer.20140306.13,
author = {Samim Uddin and Md. Niaz Murshed Chowdhury and Dr. Mohammad Abul Hossain},
title = {Determinants of Inflation in Bangladesh: An Econometric Investigation},
journal = {Journal of World Economic Research},
volume = {3},
number = {6},
pages = {83-94},
doi = {10.11648/j.jwer.20140306.13},
url = {https://doi.org/10.11648/j.jwer.20140306.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20140306.13},
abstract = {Both the increase and the decrease of inflation rate (General Price level) are like a two side sharpened razor in an economy like Bangladesh. They both are harmful for an economy. Therefore, it has been attempted here to know about some experimented determinants of inflation. Moreover, in this respect a well-known econometric technique, namely, Autoregressive Distributed Lagged (ARDL) Model has been applied. By employing data series for 1972 to 2012, it has been indicated that the gross domestic product (GDPt), money supply (M2t), and interest rate (IRt) of current year of Bangladesh as well as previous year’s real exchange rate (RERt-1) and interest rate (IRt-1) have contributed to increase inflation in Bangladesh. It has also been noticed that current year’s real exchange rate (RERt) in Dollar and previous year’s money supply (M2t) have contributed to decrease the inflation rate. In our study, we emphasized on the significance of variables and availability of data because of which some important determinants like unemployment rate (Ut), remittance (REMt) and oil price (PPt) have been ignored in main model.},
year = {2014}
}
TY - JOUR T1 - Determinants of Inflation in Bangladesh: An Econometric Investigation AU - Samim Uddin AU - Md. Niaz Murshed Chowdhury AU - Dr. Mohammad Abul Hossain Y1 - 2014/11/20 PY - 2014 N1 - https://doi.org/10.11648/j.jwer.20140306.13 DO - 10.11648/j.jwer.20140306.13 T2 - Journal of World Economic Research JF - Journal of World Economic Research JO - Journal of World Economic Research SP - 83 EP - 94 PB - Science Publishing Group SN - 2328-7748 UR - https://doi.org/10.11648/j.jwer.20140306.13 AB - Both the increase and the decrease of inflation rate (General Price level) are like a two side sharpened razor in an economy like Bangladesh. They both are harmful for an economy. Therefore, it has been attempted here to know about some experimented determinants of inflation. Moreover, in this respect a well-known econometric technique, namely, Autoregressive Distributed Lagged (ARDL) Model has been applied. By employing data series for 1972 to 2012, it has been indicated that the gross domestic product (GDPt), money supply (M2t), and interest rate (IRt) of current year of Bangladesh as well as previous year’s real exchange rate (RERt-1) and interest rate (IRt-1) have contributed to increase inflation in Bangladesh. It has also been noticed that current year’s real exchange rate (RERt) in Dollar and previous year’s money supply (M2t) have contributed to decrease the inflation rate. In our study, we emphasized on the significance of variables and availability of data because of which some important determinants like unemployment rate (Ut), remittance (REMt) and oil price (PPt) have been ignored in main model. VL - 3 IS - 6 ER -
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