Democracy and Economic Diversification: Experience from Bangladesh

Nabila Maruf and A. F. M. Ataur Rahman

This current study looks into the relationship between democracy and economic diversification for Bangladesh. Using arguments in the line of Johansen-Engel-Granger we find that as Bangladesh is becoming more politically diversified the economy is becoming less economically diversified. We also looked into export and import diversification and found that country wise export becomes more concentrated with democracy. For import we do not find any discernible trend.