Is the economy of Bangladesh actually expanding? An analysis using the Hayashi, Kehoe and Prescott approach of Growth Accounting, and other related factors

Abstract

This paper is about inconsistencies between two scenarios of Bangladesh. On one hand Bangladesh is recognized as the top rich growing country, and on the other hand old women cry out of hunger or attempt suicide for being unable to feed their children. In this paper I’ll try to figure out the facts and causes that are responsible for such an inconsistency. This paper is also a study about the changes of growth that have happened until now in Bangladesh and about an answer to the question of what growth really means. I have also tried to figure out the condition of three countries (Bangladesh, India, and Pakistan), which were united until the separation of 1947 and became three independent nations in 1971. This study will not analyze political problems but will try to show the current economic situation of these countries. I will try to find out which changes are required for country development. The main approach used here is the growth accounting model proposed by Hayashi, Kehoe and Prescott.