September 2018 (Journal of Accounting, Finance and Economics)

September 2018 (Journal of Accounting, Finance and Economics)

Total Articles - 8

Pages 1-16

Author: Ayesha Tasnim and Sakib Bin Amin

As the world is becoming more of a global village, Bangladesh is also having its fair share of growth through technological advancement, development in energy sector, open economy and thus attracting foreign investors in the process. A close observation may reveal a causal relationship between electricity generation, trade openness, Foreign Direct Investment and output, though no attempt has been made to explore such nexus in Bangladesh. Hence, this study aims to investigate the existence and direction of causality among the variables electricity generation, trade openness, Foreign Direct Investment and output in Bangladesh over the period 1980-2013. The findings show a long run cointegrating relationship among these variables. The inferences drawn from the study imply adoption of energy growth policies as important policy implication.

Pages 17-34

Author: Adila Karim and Sakib Bin Amin

This study is done to assess the relationship between the population growth and economic growth. The analysis is carried out on a sample of five South Asian countries. The study investigates the impacts of population growth and the problems due to this change in population and its influence on economic growth. We take the time series data with the sample size from 1980 to 2015. In this research paper, economic growth is the dependent variable and population, urban population, fertility rate and life expectancy at birth rate are the independent variables; data collected from World Development Indicators (WDI). Unit root tests, Cointegration tests, and Granger causality tests, followed by Vector Error Correction Model (VECM) is used to examine the relation between population and per capita GDP for the selective South Asian countries. The VECM result reveal that in the long run equilibrium, the population growth and strength has no significant impact on per capita GDP. The granger causality test shows that there also exists no causality between economic growth and population growth. The research paper concludes that a long-run relation between population and real per capita GDP does not appear to exist and therefore, population growth neither causes growth of economic growth, nor is caused by it.

Pages 35-57

Author: Samiyah Haque, Sakib B. Amin and Sunny Rabiul Karim

Two major trade cities in Bangladesh, namely Dhaka and Chittagong, have undergone rapid rates of urbanization in the past decade. This is a good sign as many academics, policy makers and economists regard rapid urbanization as an important indicator of the country’s development. One of the causes of urbanization is the shift of labour from rural areas to urban areas. This implies that labour is shifting from the primary sector to the manufacturing sector or service sector, which provides them with a better standard of living due to higher wages earned. However, this also makes Dhaka and Chittagong highly vulnerable to disaster risk. This is because, the high density of people and assets in a particular area may lead to significant loss of life and capital accumulated through years of development efforts. Over the past decade, Bangladesh has experienced an increase in frequency of natural disasters. According to the Global Climate Risk Index (2015), Bangladesh has been ranked 6th in the world based on vulnerability of Climate Change. As a result, proper disaster risk management measures are necessary to mitigate the adverse effect of disasters in Dhaka and Chittagong. The paper finds a positive correlation between disaster risk and the rate of uncontrolled rural to urban migration in most countries. However, in some countries like Nicaragua, there is a negative correlation between disaster risk and the rate of rural to urban migration. In Dhaka, there is a strong positive linkage between the country’s exposure to disaster risk and the rate of urbanization in Dhaka and Chittagong.

Pages 58-71

Author: Farhan Khan, Sakib B. Amin and Saanjaana Rahman

Emerging countries undergo economic transformation through urbanization in which to continue modern economic activities, there exists high demand for different energy sources such as electricity, oil, coal, natural gas etc. To the best of our knowledge, no studies have been conducted to investigate the impact of urbanization on energy consumption intensity in Bangladesh and thus, the aim of this paper is to empirically analyze the effect of urbanization on energy consumption intensity with the help to time series data ranging from 1980-2015. Johansen’s cointegration test reveals that our variables are co integrated and through Granger Causality test we have found that there is a unidirectional causality running from urbanization to energy consumption intensity in the long run but in short run, Vector Error Correction Model (VECM) confirms no causality among the variables of interest. We employed CUSUM and CUSUMSQ tests to check the stability of the model and have found that the model is stable. Long run estimation results indicate that coefficient value of urbanization is positive and elastic as well. To carry on different economic activities in urban areas, proper policies should be taken to improve the energy sector in Bangladesh.

Pages 72-87

Author: Lamia Lazmi Khandker, Sakib B. Amin, and Farhan Khan

Foreign direct Investment (FDI) is a source of investment which allows any business or sector to grow. It works as a catalyst in developing countries for enhancing total output level. Beside this, FDI also promotes energy efficiency and clean energy. To the best of our knowledge no studies have been conducted to explore the relationship between FDI and renewable energy consumption in the context of Bangladesh. Therefore, the aim of this paper is to reveal the relationship between FDI and renewable energy consumption in Bangladesh with the help of time series data spanning from 1980 to 2015. Johansen’s cointegration test confirms that variables are cointegrated in the long run and Granger causality test reveals that there is a bidirectional causality between our variables of interest. Through Vector Error Correction Model (VECM), we found no causality between the variables in the short run. We employed CUSUM test to check the stability of our variables and result indicates that our variables are stable. Policies regarding attracting more FDI should be considered to increase the investment in Renewable energy sector.

Pages 88-95

Author: Farhana Shahnaz, Golam Samin Rahman and Bushra Humaira Sadaf

The rapid growth of urban-rural migration, characterized by environmental, economic or demographic crises, has been a topic of resolute attention in recent times in the context of Bangladesh. The inherent rural-urban wage differential, primarily, has led to a massive influx of rural migrants to the city, in hopes of better employment opportunities over the years. However, the constraints in the absorptive capacity of the rural job sector have led to the formation of a rural informal sector that hosts the excess labour. Although estimated to be about 89% of the total number of jobs in the labor market, the informal sector’s contribution to the process of economic growth and national development is almost insignificant. This sector still has untapped potential which may be leveraged with the proper tools. Financial services, in the form of microfinance, to the informal sector can be a driver for job creation and substantial growth. It may, therefore, be hypothesized that the aggregate impact of microfinance on the overall informal employment is positive. Using an analytical exercise, this study finds that microfinance can effectively help alleviate informal employment. Bangladesh can thus utilize its extensive microfinance operations to achieve goals of poverty reduction, leading to greater economic development

Pages 96-105

Author: Sakib B. Amin, Farhan Khan, Shahtaj Mahmud and Golam Samin Rahman

Foreign aid has been existing since the formation of national states. The rich developed countries or agencies are always helping the developing countries through different types of foreign aids. It not only effects growth but also helps to improve different socio economic aspects of the recipient country. The aim of this paper is to explore the impact of foreign aid on energy consumption intensity and carbon intensity as no studies have been conducted in this context in Bangladesh. We used time series data from 1980 to 2015 for our empirical analysis. Johansens’s cointegration test confirms our variables are cointegrated in the long run. We used Dynamic Ordinary Least Square (DOLS) and Generalized Method of Moments (GMM) to check impact of foreign aid on energy consumption intensity and carbon intensity. According to the results of these estimation approaches, we found that foreign aid reduces energy consumption and carbon intensity in Bangladesh. However, the effect on energy consumption intensity is much lower than the effect on carbon intensity.

Pages 106-125

Author: Shaharia Akter and Sakib B. Amin

Sustainable economic development is required for any country. Thus, energy policy should be carefully taken since energy can affect both growth and economy. Ethics can also help to coordinate all these. The social value depends crucially on the social objective, which is not necessarily self-evident, e.g., since some individuals tend to value nature intrinsically. The importance of being explicit about value judgments is emphasized, and it is argued that environmental economics should consider non-conventional assumptions which take the social context into account to a larger degree. In a fast growing country like Bangladesh, the concept of ethical energy policy structuring is of utmost importance following the fact that energy has been enlisted as one of the crucial factors of production complementing labor and capital. Existing literature reveals that how much they paid attention on the role of ethics. But no one focus on the fact of ethics. Therefore, the paper objective of this paper is to combined ethics with energy, economics and environment for sustainable development in Bangladesh economy. The paper concludes that energy economists and policy makers are often bombarded with ethical issues in developing energy policies whereby unequal access to energy is resulted amongst the population of developing countries in particular.

Total Articles- 8

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