Thesis (Master of Science in Applied Economics)

Permanent URI for this collectionhttps://hdl.handle.net/10361/28404

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Open Access
Capital adequacy, asset quality and profitability: a study on conventional banks in Bangladesh
(BRAC University, 2026) Afroze, Chowdhury Tahrima; Khan, Wasiqur Rahman; Department of Economics and Social Sciences
This study examines the relationship between capital adequacy and asset quality with profitability. Capital is main factor of banks and adequate capital works as the insurance and confidence factor for the banks. If NPL of banks increases, the cost of funding cannot be recovered. This increased cost of funding decreases the ROA, ROE, and NIM in Bangladesh. Provision kept due to increased NPL creates an obstacle in the case of lending, which ultimately decreases the profit. Profitability is also affected by bank size. It is easier for banks to achieve economies of scale if they have large asset size but incapability of achieving economies of scale will lower the profit of banks. In this study a sample size of 20 conventional banks out of 34 have been selected covering the period 2009 to 2018. This study uses the capital adequacy ratio, equity to asset ratio, bank size, NPL to total loan, and loan loss provision to total assets as proxies for capital adequacy, and asset quality. Return on assets, return on equity and net interest margin are used as proxies for banks‘ profitability. Capital adequacy is considered as the main driver of many financial institutions. KMO and Bartlett‘s test, Descriptive Statistics, Analysis of Variance (ANOVA), Coefficient Analysis, Correlation analysis, Trend Analysis has been used in this study. For multiple regression analysis three regression models are developed. Equity to asset is positively related with ROA, ROE, and NIM. NPL to total loan, loan loss provision to asset have a negative impact on profitability. Though CAR and bank size are negatively related to ROA and ROE, they are positively related to NIM fulfilling the expected results and hypothesis.
Open Access
Price stickiness in Bangladesh macro and micro approach
(BRAC University, 2026-04) Maeoka, Haruka; Khan, Wasiqur Rahman; Department of Economics and Social Sciences
This paper investigates the degree of price stickiness in Bangladesh using both macroeconomic and microeconomic approaches. While price rigidity has been extensively studied in developed economies, empirical evidence for developing countries remains limited, particularly in environments with relatively high inflation. This study addresses this gap by estimating price stickiness through a New Keynesian framework and disaggregated price data. The findings suggest that high inflation does not necessarily imply flexible pricing in developing economies. Instead, aggregate price rigidity may arise from the coexistence of highly sticky and relatively flexible prices within the consumption basket.nominal rigidity
Open Access
Strategic assets, corporate governance and firm performance: a study on an emerging economy
(BRAC University, 2025-09) Jheel, Narvin Meherun; Mamun, Syed A.; Department of Economics and Social Sciences
This study examines the impact of intellectual capital (IC) as a strategic asset and corporate governance on firm performance in Bangladesh's manufacturing sector from 2018 to 2024. Utilizing an unbalanced panel of 101 listed firms (678 firm-year observations), the analysis employs the Value Added Intellectual Coefficient (VAIC) model and a two-step system GMM estimator to address endogeneity. The findings reveal that intellectual capital efficiency has a significant positive effect on Return on Assets (ROA), underscoring its role as a key driver of operational performance. However, this relationship is not consistently observed for Return on Equity (ROE). Furthermore, institutional ownership strengthens firm performance, while board independence negatively moderates the IC-performance link. The study concludes that intellectual capital is a critical strategic resource, but its effectiveness is contingent on specific governance structures and the chosen performance metric.
Open Access
Impact of governance on economic growth: the case of an emerging economy namely Nepal
(BRAC University, 2025-09) Gurung, Bijayata; Mamun, Syed A.; Department of Economics and Social Sciences
This thesis examines the influence of governance indicators on Nepal’s economic growth from 1996 to 2023 along with assessment of the moderating role of macroeconomic variables such as Foreign Direct Investment (FDI), Gross Capital Formation (GCF) and Inflation, using the Auto Regressive Distribution Lag (ARDL) approach and qualitative semi-structured open-ended interview responses from five governance and economic expert participants. The econometric analysis reveals a long run cointegration relationship between the explanatory variables, Comp variable (aggregate of World Governance Indicators), Foreign Direct Investment (FDI), Gross Capital Formation (GCF), Inflation and dependent variable, GDP growth. It also highlights the short-term dynamics and volatility of economic growth of Nepal to political and external shocks. FDI is the only variable which shows a positive and significant relationship with GDP growth in the long run ARDL while, GCF shows negative and marginally significant at 10%. Further, Comp variable and Inflation show positive influence on GDP growth in the long run but is not statistically significant. Complementary qualitative expert insights underline governance challenges such as corruption, weak government effectiveness and political instability as major impediments and suggest governance reforms paired with strategies to mobilize domestical capital, attract and monitor foreign investments and channelize them into high return as vital if Nepal is to achieve inclusive and sustainable economic growth. The study contributes by integrating both empirical and qualitative evidences offering wide-ranging vision and policy direction to strengthen governance and sustain economic growth in Nepal.
Open Access
Unveiling corporate transparency: the determinants of ESG disclosure in emerging markets
(BRAC University, 2025-07) Wye, Amitavo Chowdhury; Mamun, Syed A.; Department of Economics and Social Sciences
This study investigates the determinants of Environmental, Social, and Governance (ESG) disclosure in firms across emerging counrtries, aiming to explore how financial performance, leverage, and institutional factors impact the level of ESG transparency. The research employs panel-autoregressive models (AR (1)) with fixed effects (FE) and robust-clustered standard errors to address heteroscedasticity and endogeneity. In addition, the system’s generalized method of moments (GMM) is applied to handle potential endogeneity issues in the dynamic panel data models. The study finds a significant positive relationship between lagged ESG disclosures and current disclosures, confirming the persistence of ESG practices. While debtto- asset ratio and profitability indicators (ROA, ROE) had weak or non-significant effects on ESG disclosure, the Corruption Perception Index (CPI) was positively correlated with ESG reporting, indicating that better governance and transparency at the country level drive corporate ESG disclosure. The findings suggest that policymakers should strengthen regulatory frameworks to mandate ESG reporting, particularly in emerging markets. Furthermore financial institutions can incentivise ESG practices by linking financing terms to sustainability performance. Companies should prioritise long-term value creation through enhanced transparency in their ESG activities. This research contributes to the growing literature on ESG disclosure by examining firm-level data across the LATAM and EMEA regions. It provides novel insights into the institutional and financial drivers of corporate transparency on ESG issues, highlighting the importance of regulatory pressure and economic health in promoting sustainable corporate behaviour.
Open Access
Information asymmetry, ESG disclosure practices and performance of Asian islamic banks: evolution, convergence, and governance moderators
(BRAC University, 2025-08) Basri, Rabeya; Mamun, Syed A.; Department of Economics and Social Sciences
Environmental, Social, and Governance (ESG) disclosure has become a strategic imperative for banks worldwide, yet little is known about how Islamic banks, rooted in Shariah principles of ethical governance and social justice, navigate this landscape. This study examines 30 independent fully fledged Islamic, publicly listed banks across Asian countries for the years 2018 and 2023 to (1) trace the evolution and convergence of ESG disclosure and (2) assess its impact on financial performance, market performance and risk, under varying governance structures. The study develops an Environmental, Social, and Governance disclosure index (ESGDI) of 44 items for each sample Islamic bank to assess its level of ESG practices from their annual reports and deployed paired t‑tests, ANOVA/Kruskal-Wallis, coefficient of variation analysis, and cross‑sectional OLS regressions with robust standard errors and interaction terms. Our findings reveal a marked increase in overall ESGDI from 0.46 in 2018 to 0.67 in 2023, with environmental scores rising most sharply (Δ=0.31) and governance scores remaining highest (0.57→0.73). Convergence metrics indicate a significant reduction in score dispersion post‑COVID. Regression results show that higher ESG disclosure is positively associated with profitability (ROA, ROE) and market valuation (Tobin’s Q), though its link to capital adequacy (CAR) is weaker. Crucially, board independence and institutional ownership strengthen the ESG-performance relationship, while gender diversity on boards amplifies the effect on return on equity. This study contributes to ESG and Islamic finance scholarship by disaggregating disclosure dimensions, documenting convergence trends, and elucidating governance contingencies. Practically, it offers regulators and bank executives actionable insights for developing Shariah‑aligned ESG frameworks and governance policies that maximize the value of sustainability reporting.
Open Access
Understanding the trend of household tourism spending: income and socio-demographical disparities
(BRAC University, 2025-04) Zaman, Noshin Tasnim; Shafiullah, Muhammad; Department of Economics and Social Sciences
This study explores household tourism expenditure in Bangladesh, with a particular interest in how these differ according to household income and socio-demographic characteristics, using data from the Household Income and Expenditure Survey (HIES) for 2010, 2016, and 2022. Leveraging OLS, IV 2SLS, Lewbel GMM, and Blinder-Oaxaca decomposition approaches, the study uncovers the key changes in household behaviour and reveals the determinants of tourism expenditure over time. The outcomes demonstrate that the income elasticity of tourism expenditure significantly increased, suggesting changing priorities and an improved economic situation. Also, tourism spending gaps are compared and explained by geographic (coastal vs. non-coastal), locational (rural vs. urban), marital, and gender diversities, using explained and unexplained perspectives of spending inequality. The findings of this paper offer important policy considerations for promoting equitable tourism growth, regional development, and redressing socio-economic inequalities. Together, these insights will collectively enable a deeper understanding of tourism economics in a developing country and highlight the importance of inclusive policy frameworks in enhancing sustainable tourism development.
Open Access
Analyzing wage gap based on gender: insights from the Bangladesh Labor Force Survey 2016-17
(BRAC University, 2025-01) Aishi, Shamima Khandakar; Kamal, K.M. Arefin; Department of Economics and Social Sciences
Bangladesh has one of the lowest gender salary discrepancies in the world, with a deficit of just 2.2% as of the most recent data, according to UN research. This thesis investigates the gender wage gap in Bangladesh using data from the Labor Force Survey (LFS) 2016-17, focusing on non-agricultural workers. The quantitative analysis based on secondary data reveals significant disparities in wages, working hours, education levels, and industry participation between male and female workers, reflecting deep-rooted structural inequalities in the labor market. On average, Men earn more than women. The study also found that female workers have lower levels of education and are more likely to be concentrated in low-paid industries, both of which contribute to the income gaps. To understand how human capital affects wages, mincer regression has been used to examine the causal connection between earnings, experience, and education. The results highlight the necessity of focused governmental initiatives to advance gender parity in schooling and labor market involvement, especially in industries with a preponderance of men.
Open Access
Does working from home boost productivity
(BRAC University, 2024-11) Khondaker, Sanjana; Shafiullah, Muhammad; Department of Economics and Social Sciences
This study investigates the impact of remote work on employee productivity, exploring the roles of autonomy, training, and individual characteristics in dictating employee performance. Using cross-sectional data from the Chinese General Social Survey (CGSS), I employ various methodological approaches to address selectivity bias and endogeneity concerns inherent in the analysis. Initially, ordinary least squares (OLS) regression is utilized to estimate associations between remote work, autonomy, training, and productivity. Subsequently, a multinomial logit model is employed to identify which individuals are more likely to do remote work. To mitigate potential bias, propensity score matching estimator is used, considering observed heterogeneity between remote and non-remote workers. Furthermore, instrumental variable (IV)-free Gaussian Copula and Lewbel methods are also utilized to assess the causal effect of remote work on productivity. The findings reveal that remote work positively impacts employee performance, however, long hours or frequent remote work negatively affect productivity. Notably, a significant causal relationship is identified. Additionally, greater autonomy and training are associated with enhanced productivity. Moreover, demographic factors such as gender, marital status, and parental responsibilities influence remote work tendencies, with educated individuals exhibiting lower likelihoods of remote work, while those receiving training and receiving greater independence tend to opt for remote work arrangements.
Open Access
An experiment on trust behavior: the endowment and reputation effect on fear, temptation, and cooperation in continuous trust game
(BRAC University, 2024-11) Bhuian, Shamsul Shahriar; Haider, A S M Shakil; Department of Economics and Social Sciences
This thesis explores the dynamics of trust and trust-based behaviors such as fear, greed, and cooperation in a continuous trust game experiment, comparing a model based on the Prisoner's Dilemma with a proposed theoretical model for the FTC (Fear, Temptation, and Cooperation) Index. The study hypothesizes that financial conditions, specifically initial endowments and social conditions, such as Reputation, would influence trust-related decisions by reducing fear and greed and promoting cooperation. The research explored various non-parametric analyses and regression to explore the latent effect of the Endowment and Reputation through their mediators on fear, greed, and cooperation. Surprisingly, initial endowment proved insignificant across both models and regression analyses, suggesting that financial factors may not play as vital a role as anticipated. Instead, social factors, particularly reputation, significantly influenced trust behavior. The findings indicate that a healthy, trust-promoting environment fosters cooperation more effectively than financial incentives alone. The proposed model better captures these social dynamics and outperforms the Prisoner's Dilemma-based model in predicting trust-related outcomes. This research underscores the complexity of human decision-making, where psychological and social elements, such as reputation, often outweigh financial considerations in fostering trust and cooperation, reducing societal and individual fear and greed.
Open Access
Taka-dollar exchange rate dynamics in relation to federal interest rates and the Bangladesh-USA trade balance: a time series analysis
(BRAC University, 2024-06) Zaman, Foara; Khan, Wasiqur Rahman; Department of Economics and Social Sciences
This paper has studied and analyzed the impact of factors like the Federal Interest Rate and Bangladesh US trade balance on the Taka dollar exchange rate using time series analysis. Here, the co-integration relation of the Federal Interest Rate and Bangladesh US trade balance with the Taka-dollar exchange rate has been shown using the Johansen Co-integration Test. After analyzing the data, a long-term relationship has been found between the taka-dollar exchange rate and the Bangladesh-US trade balance, but it also shows that the relationship between the exchange rate and the federal interest rate is weaker, which means the Fed rate does not have any impact on the exchange rate. This paper offers strategic advice for reducing negative economic effects and informs politicians and economists regarding the fundamental factors affecting currency stability.
Open Access
Profitability of islamic banks: evidence from Bangladesh
(BRAC University, 2022-01) Nova, Naoreen Farhana; Robin, Iftekhar Ahmed; Department of Economics and Social Sciences
The thesis investigates the impact of bank-specific factors on the profitable measures of Islamic Shariah based banks in Bangladesh for the period, 2014-2018. The sample contains bank level annual data of eight (08) Islamic commercial banks that are operating full-fledged in Bangladesh. The regression results show that loans and advances have a significant and positive impact on a bank's profitability. On the other hand, bank deposits have a negative and significant effect on profitability. Therefore, banks should expand their loan portfolio in economically viable projects. Secondly, banks should mobilize cost effective funds and deposits from alternative sources for investment. The findings of this study would help the bank management, investors, policy makers and other stakeholders for improving the performance of Islamic Shariah based banks in future.
Open Access
Uncovering gender pay disparities: an examination of chinese gig workers' earnings and asset
(BRAC University, 2024-04) Yeasmin, Sabrina; Shafiullah, Muhammad; Department of Economics and Social Sciences
The analysis utilized gender pay disparities among Chinese gig workers' earnings and asset ownership in Chinese households. To analyse the determinants of gig workers' earnings and asset ownership disparities, we avail data from China Household Finance Survey (CHFS) 2017 sample. Possible presence of endogeneity is accounted in the model specification as well as by using the Lewbel heteroscedasticity identified endogenous variables estimator and Oster's (2019) technique to test for potential omitted variable bias and the coefficient stability of our conflict variable. In addition, we are the first to scrutinise disparity and discrimination by conducting the Blinder–Oaxaca decomposition of asset ownership model by gender, Gig worker, region (Eastern vs. non-Eastern provinces), and urbanisation status (rural vs. urban residents). Our analysis shows: (i) Gig workers who are women typically make less money; (ii) asset ownership determinants including durable goods and precious metals discrimination are found. Female gig workers found discrimination in durable goods; and (iii) the Blinder– Oaxaca decomposition analyses show statistically significant gender and gig workers discrimination in asset ownership in terms of precious metals. However, there is statistically significant discrimination between Eastern and non-Eastern provinces and between rural and urban households in asset ownership.
Open Access
Effects of local wages on female joint decision of marriage and working: a cross-data analysis
(2024-05) Shrity, Salma Sultana; Kamal, K.M Arefin; Department of Economics and Social Sciences
This research investigates how rising local wages in Bangladesh influence young women's joint decisions regarding marriage and labor force participation. It conducts a comparative analysis of female involvement across districts characterized by diverse wage levels, unveiling nuanced responses to economic stimuli. The analysis, employing a cross-sectional survey focusing on young women aged 18-30, reveals a significant relationship between local wages and labour force participation for unmarried women. These rising local wages incentivize unmarried women to prioritize career pursuits over marriage, potentially due to increased financial independence and career opportunities. Conversely, the impact of local wages on the decision-making of married women is less pronounced. While there is a slight tendency for married women to remain employed as local wages rise, wages do not significantly influence the decision to enter the workforce. These findings highlight the likelihood of a woman's decision regarding marital status and workforce participation. They also hold valuable insights for policymakers aiming to design interventions that promote gender equality and empower women in the Bangladeshi workforce.
Open Access
A qualitative choice analysis: examining the factors shaping the patterns of mortgage payment irregularities
(BRAC University, 2023-12) Kabir, Mohammad Hasan; Quadria, Taufiq Hasan; Department of Economics and Social Sciences
This thesis examines the factors influencing mortgage payment irregularities among individuals. A positive association between higher financial literacy and irregularities challenges the expected results of a negative correlation. While financial education shows potential long-term impacts, home equity loans exhibit stabilization effects that contribute to regular payments. Risk-taking preferences display anticipated connections with irregularities, but financial goal confidence has a surprisingly positive tie to fluctuations in payments. Though improved financial education emerges as a critical implication, the results reveal complex financial decision dynamics, demanding further investigation into the mechanisms driving mortgage behaviors. The limitations of the data sources, measurements, omitted influences, and evolving risk perceptions highlight the need to refine our understanding through continued research on the intricate factors shaping mortgage payment patterns. Ultimately, unraveling these nuances promises major advancements in literacy programs, policies, and lending practices aimed at greater stability across mortgage and economic landscapes.
Open Access
Effects of climate change variables on under-five child stunting in Bangladesh
(BRAC University, 2023-09) Khan, Tausif Amin; Shafiullah, Muhammad; Department of Economics and Social Sciences
This research paper explores the impact of geospatial variables and sociodemographic factors on child stunting in Bangladesh, using data from the 2014 wave of BDHS (Bangladesh Demographic and Health Survey) and climate data from Bangladesh Meteorological Department (BMD) spanning 2009 to 2013. It was found that the average age of children under 5 in the sample is approximately 29 months (about 2 and a half years), with mean weights and heights slightly below the expected values. The climate data indicates that Bangladesh experiences mean maximum temperatures of over 34°C and mean minimum temperatures of around 21°C, with a relatively high average relative humidity of 79%. Rainfall averages 738.6 mm (about 2.42 ft) across divisions with low variability. Visual analysis shows that temperature has a limited impact on children's height, while higher relative humidity and rainfall are linked to height stunting. Regression analysis confirms these findings, revealing that increased relative humidity negatively affects the Height-for-Age Z-Score (HAZ) by nearly 2 percent, while rainfall has a minimal to no impact on HAZ. Male children have a 12 percent higher HAZ, and higher parental education and family wealth positively influence children's HAZ scores. These results contribute to our understanding of the factors influencing child stunting in Bangladesh and emphasize the importance of addressing both climate-related variables and sociodemographic factors to improve children's nutritional outcomes.
Open Access
A thesis on utilizing machine learning models to predict material hardship
(BRAC University, 2023-12) Das, Tirtha; Quadria, Taufiq Hasan; Department of Economics and Social Sciences
This thesis addresses the concern of material hardship, defined by a paucity in resources necessary to fulfil fundamental needs, especially affecting children and families. Drawing insights from studies on the determinants of material hardship, including low income, unemployment, single parenthood, and financial literacy, the research employs a comprehensive methodology. It incorporates the integration of machine learning techniques to enhance the predictive capacity of identifying at-risk populations. The methodology advocates for a holistic approach, incorporating the transformative potential of machine learning techniques such as Logistic Regression, Non-Linear Support Vector Machine Model, Decision Tree etc. This paper highlights the transformative potential of machine learning in proficiently analyzing extensive datasets to recognize complex patterns. The positive correlation established between higher financial literacy, bill paying tendency, management of finances and improved economic outcomes stresses the potential impact of targeted financial education initiatives. Moreover, the research emphasizes the need for a proactive stance, advocating for the development of predictive models using historical evidence to anticipate and address material hardship in a timely manner. The inferences emphasize the necessity for targeted interventions and proactive measures, promoting social equity, resilience, and contributing to broader poverty reduction strategies
Open Access
Impact of inflation on female labor force participation: A panel study on the countries of Indian sub-continent
(BRAC University, 2022-12) Bhuiyan, Upoma Rahman; Hasan Jamil, Dr. Gazi Mohammad; Department of Economics and Social Sciences
This paper has studied the impact of inflation on Female Labor Force Participation (flfp). This study was conducted on the Indian Sub-continental countries. Countries included in this study are still in the developing phase and participation of females in the labor market is very crucial for further economic development. Inflation affects the expenditure and real wage and overall household income, so it was tested if this economic shock of inflation affects the participation of female labor. Other explanatory variables were considered which might affect the flfp. Some explanatory variables could have been included in the regression, but the unavailability of the data has been a constraint. The overall empirical results support my hypothesis that with the increase/decrease in inflation, Net National income decrease/increase respectively and the the relation between NNI and FLFP is inverse relation. Inflation can be used to understand the behavior of ‘flfp’ when the individual entity effect and time effect are taken into consideration.
Open Access
Relationship between FDI and economic growth: a comparative panel study between Asian and African LDCs
(BRAC University, 2023-02) Abedin, Taasin; Khan, Wasiqur Rahman; Department of Economics and Social Sciences
This paper investigates the relationship between foreign direct investment (FDI) and economic growth in selected least developed countries of Asia (Bangladesh, Bhutan, Cambodia, and Nepal) and Africa (Comoros, Mali, Senegal, and Uganda). The study aims to provide a comprehensive comparison of the impact of FDI on economic growth in these regions and to examine whether initial conditions and country-specific features can explain differences in the growth benefits of FDI. Using panel data regression techniques and twenty years (2002-2021) data from World Development Indicators and UNCTAD, the study finds that FDI is an important contributor to economic growth in the selected Asian and African countries. The dependent variable for the study is economic growth and the independent variables are FDI inflow, capital investment, inflation, external trade, and external debt shocks. The results of foreign direct investment in various countries have been beneficial for economic growth. Additionally, the analysis shows that on average, African countries experience a greater impact of FDI on economic growth compared to the selected Asian countries, despite the higher GDP growth in the Asian region. The study also found that economic growth is negatively affected by debt shock and inflation, while exports expansion and capital investment have a positive impact on economic growth. Overall, the study adds to the existing empirical literature by exploring an under-researched area and providing valuable insights into the role of FDI in promoting economic growth in least developed countries.
Open Access
Does the adoption of solid cooking fuel contribute to adverse child health outcomes? A Propensity Score Matched (PSM) analysis from Bangladesh Demographic and Health Survey, 2011- 2018
(BRAC University, 2022-11) Chowdhury, Rupok; Khan, Dr. Wasiqur Rahman; Department of Economics and Social Sciences
Low birth weight and severe respiratory infections in children are just two of the acknowledged negative health impacts of household air pollution caused by the use of solid fuels for cooking, which is still a serious public health concern in underdeveloped nations. Using data from Bangladesh demographic and health census 2011-2018, the paper evaluates the effects of dirty fuels on health. The application of propensity score-matching method by year unadjusted and later unbiased year adjusted estimation with average treatment effect on the treated (ATT) shows that dirty fuel households have a 37.8% greater incidence of stunting than clean fuel households and no link with having ARI with solid fuel use, which is biased result for unadjusted matching. However, this ATT estimate after year-specific match shows 33-35% rise of malnutrition and 2.8 to 5.6% increase in respiratory illness because of solid fuel adoption. Due to the shortcomings of this study, more research is needed to better devise strategies to discourage households from using solid cooking fuel and encourage the use of more affordable, healthier alternatives.

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