How can Developing Countries in Asia Achieve Economic Growth? Taking Bangladesh as an example

Department of Economics, University of Sheffield, 9 Mappin Street, Sheffield, S1 4DT, United Kingdom

^* Corresponding author: hwu69@sheffield.ac.uk

Abstract

This study analyzes the key drivers of economic growth in Bangladesh from 1980 to 2018 based on theoretical frameworks and historical data. It takes Bangladesh’s development experience as the research object and aims to make three contributions. Firstly, it examines the main contributing factors to Bangladesh’s past growth within the analytical framework of the neoclassical growth theory. This allows summarizing the underlying causes of Bangladesh’s historical economic growth trajectory. Secondly, it investigates the current contributing factors and obstacles to growth in Bangladesh to understand how countries like Bangladesh, Myanmar and Vietnam can achieve ongoing economic growth. Lastly, the research methodology employs empirical analysis of time series data on factors such as investment, labor force, technology and GDP within the framework of neoclassical growth theory. The findings suggest that capital accumulation, driven by investment, has made the largest contribution to Bangladesh’s strong economic performance in recent decades. However, risks remain if over-reliance on the garment industry and uneven regional development are not addressed through continued policy reforms focusing on diversification, balanced development and social inclusion. The study provides preliminary guidance for Bangladesh and similar nations to sustain their growth momentum.