Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach

Rejoana Islam; Refat Ferdous; Nahida Sultana; Marzia Nomi

doi:doi:10.11648/j.eco.20221104.14

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Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach

Rejoana Islam, Refat Ferdous, Nahida Sultana, Marzia Nomi

Published in Economics (Volume 11, Issue 4)

Received: 29 September 2022 Accepted: 12 November 2022 Published: 25 December 2022

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Abstract

Growth, sustainability and strength of an economy reflected through the variables which measure the macroeconomic performances e.g. output, unemployment rate, stability of price, balance of export and import and exchange rate stability. All of that stability of price which is pronounced in field of economics by inflation is more complicated and a fragile variable, measures the overall strength and welfare of an economy. Interactive augmentation among the variables is needed to be identified and defined for the policy making purpose which is comprehensive and pre-requisite to implement and design the policy prescriptions. In this paper we investigate the macroeconomic variables which determined the inflation of Bangladesh by using time series data from year 1981 to 2020. Using Autoregressive Distributed Lag (ARDL) model with bound test approach, it is found that gross domestic product (gdp), broad money supply (m2), export growth (xg), import growth (mg) and growth of population (pg) are the major determinants of inflation (inf) in Bangladesh. Though the interaction of those variables is different on inflation but there long-run and short-run penetrations are statistically impactful.

Published in	Economics (Volume 11, Issue 4)
DOI	10.11648/j.eco.20221104.14
Page(s)	200-210
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), 2024. Published by Science Publishing Group

Keywords

Inflation, GDP, Export, Import, Money Supply, ARDL Bound Test

References

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APA Style

Rejoana Islam, Refat Ferdous, Nahida Sultana, Marzia Nomi. (2022). Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach. Economics, 11(4), 200-210. https://doi.org/10.11648/j.eco.20221104.14

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ACS Style

Rejoana Islam; Refat Ferdous; Nahida Sultana; Marzia Nomi. Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach. Economics. 2022, 11(4), 200-210. doi: 10.11648/j.eco.20221104.14

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AMA Style

Rejoana Islam, Refat Ferdous, Nahida Sultana, Marzia Nomi. Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach. Economics. 2022;11(4):200-210. doi: 10.11648/j.eco.20221104.14

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@article{10.11648/j.eco.20221104.14,
  author = {Rejoana Islam and Refat Ferdous and Nahida Sultana and Marzia Nomi},
  title = {Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach},
  journal = {Economics},
  volume = {11},
  number = {4},
  pages = {200-210},
  doi = {10.11648/j.eco.20221104.14},
  url = {https://doi.org/10.11648/j.eco.20221104.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20221104.14},
  abstract = {Growth, sustainability and strength of an economy reflected through the variables which measure the macroeconomic performances e.g. output, unemployment rate, stability of price, balance of export and import and exchange rate stability. All of that stability of price which is pronounced in field of economics by inflation is more complicated and a fragile variable, measures the overall strength and welfare of an economy. Interactive augmentation among the variables is needed to be identified and defined for the policy making purpose which is comprehensive and pre-requisite to implement and design the policy prescriptions. In this paper we investigate the macroeconomic variables which determined the inflation of Bangladesh by using time series data from year 1981 to 2020. Using Autoregressive Distributed Lag (ARDL) model with bound test approach, it is found that gross domestic product (gdp), broad money supply (m2), export growth (xg), import growth (mg) and growth of population (pg) are the major determinants of inflation (inf) in Bangladesh. Though the interaction of those variables is different on inflation but there long-run and short-run penetrations are statistically impactful.},
 year = {2022}
}

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TY  - JOUR
T1  - Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach
AU  - Rejoana Islam
AU  - Refat Ferdous
AU  - Nahida Sultana
AU  - Marzia Nomi
Y1  - 2022/12/25
PY  - 2022
N1  - https://doi.org/10.11648/j.eco.20221104.14
DO  - 10.11648/j.eco.20221104.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 200
EP  - 210
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20221104.14
AB  - Growth, sustainability and strength of an economy reflected through the variables which measure the macroeconomic performances e.g. output, unemployment rate, stability of price, balance of export and import and exchange rate stability. All of that stability of price which is pronounced in field of economics by inflation is more complicated and a fragile variable, measures the overall strength and welfare of an economy. Interactive augmentation among the variables is needed to be identified and defined for the policy making purpose which is comprehensive and pre-requisite to implement and design the policy prescriptions. In this paper we investigate the macroeconomic variables which determined the inflation of Bangladesh by using time series data from year 1981 to 2020. Using Autoregressive Distributed Lag (ARDL) model with bound test approach, it is found that gross domestic product (gdp), broad money supply (m2), export growth (xg), import growth (mg) and growth of population (pg) are the major determinants of inflation (inf) in Bangladesh. Though the interaction of those variables is different on inflation but there long-run and short-run penetrations are statistically impactful.
VL  - 11
IS  - 4
ER  -

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Author Information

Rejoana Islam

Department of Economics, University of Barishal, Barishal, Bangladesh
Refat Ferdous

Department of Economics, University of Barishal, Barishal, Bangladesh
Nahida Sultana

Department of Economics, University of Barishal, Barishal, Bangladesh
Marzia Nomi

Department of Economics, University of Barishal, Barishal, Bangladesh

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APA Style

Rejoana Islam, Refat Ferdous, Nahida Sultana, Marzia Nomi. (2022). Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach. Economics, 11(4), 200-210. https://doi.org/10.11648/j.eco.20221104.14

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ACS Style

Rejoana Islam; Refat Ferdous; Nahida Sultana; Marzia Nomi. Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach. Economics. 2022, 11(4), 200-210. doi: 10.11648/j.eco.20221104.14

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AMA Style

Rejoana Islam, Refat Ferdous, Nahida Sultana, Marzia Nomi. Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach. Economics. 2022;11(4):200-210. doi: 10.11648/j.eco.20221104.14

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@article{10.11648/j.eco.20221104.14,
  author = {Rejoana Islam and Refat Ferdous and Nahida Sultana and Marzia Nomi},
  title = {Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach},
  journal = {Economics},
  volume = {11},
  number = {4},
  pages = {200-210},
  doi = {10.11648/j.eco.20221104.14},
  url = {https://doi.org/10.11648/j.eco.20221104.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20221104.14},
  abstract = {Growth, sustainability and strength of an economy reflected through the variables which measure the macroeconomic performances e.g. output, unemployment rate, stability of price, balance of export and import and exchange rate stability. All of that stability of price which is pronounced in field of economics by inflation is more complicated and a fragile variable, measures the overall strength and welfare of an economy. Interactive augmentation among the variables is needed to be identified and defined for the policy making purpose which is comprehensive and pre-requisite to implement and design the policy prescriptions. In this paper we investigate the macroeconomic variables which determined the inflation of Bangladesh by using time series data from year 1981 to 2020. Using Autoregressive Distributed Lag (ARDL) model with bound test approach, it is found that gross domestic product (gdp), broad money supply (m2), export growth (xg), import growth (mg) and growth of population (pg) are the major determinants of inflation (inf) in Bangladesh. Though the interaction of those variables is different on inflation but there long-run and short-run penetrations are statistically impactful.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Major Macroeconomic Determinants of Inflation in Bangladesh: An ARDL Bound Test Approach
AU  - Rejoana Islam
AU  - Refat Ferdous
AU  - Nahida Sultana
AU  - Marzia Nomi
Y1  - 2022/12/25
PY  - 2022
N1  - https://doi.org/10.11648/j.eco.20221104.14
DO  - 10.11648/j.eco.20221104.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 200
EP  - 210
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20221104.14
AB  - Growth, sustainability and strength of an economy reflected through the variables which measure the macroeconomic performances e.g. output, unemployment rate, stability of price, balance of export and import and exchange rate stability. All of that stability of price which is pronounced in field of economics by inflation is more complicated and a fragile variable, measures the overall strength and welfare of an economy. Interactive augmentation among the variables is needed to be identified and defined for the policy making purpose which is comprehensive and pre-requisite to implement and design the policy prescriptions. In this paper we investigate the macroeconomic variables which determined the inflation of Bangladesh by using time series data from year 1981 to 2020. Using Autoregressive Distributed Lag (ARDL) model with bound test approach, it is found that gross domestic product (gdp), broad money supply (m2), export growth (xg), import growth (mg) and growth of population (pg) are the major determinants of inflation (inf) in Bangladesh. Though the interaction of those variables is different on inflation but there long-run and short-run penetrations are statistically impactful.
VL  - 11
IS  - 4
ER  -

Copy | Download