Influential Economic Sectors and Factors of Economic Growth in Bangladesh: A Non-spatial and Spatial Econometric Study

Bangladesh, one of the five fastest-growing economies of the world achieved remarkable economic growth over the last two decades and now considered as the next Asian tiger despite so many obstacles like frequent natural disasters, corruption, and political unrest. Although it achieves strong economic growth, all the economic sectors are not performing well. Again, the growth is not evenly happened throughout the country and all the regions are not performing at the same pace. Regional inequality is a hindrance to social justice and equity and the persistence of regional disparities impedes the ability of a country to promote economic growth and social integration. This research was aimed to study the influential sectors and determinant factors that drive the economy of Bangladesh towards such growth. The study identified the important sectors and prominent determinant factors using regression and correlation analysis, and spatial regression techniques. The study has explored the regional variation and spatial pattern in these sectors and factors using the 64 administrative districts as the spatial unit of analysis. Regional variation has been assessed using the mapping technique while the spatial pattern has been identified using spatial autocorrelation technique: Global Moran’s I, General G Statistics, and LISA. The study has clearly delineated the lagging regions in terms of the performance of these sectors and factors. Those regions should be prioritized in any future economic development plan. In addition, the ever-increasing trend of income inequality should be addressed. Otherwise, a large section of the population cannot be benefited from this economic growth due to unequal growth of income.