http://rulrepository.ru.ac.bd/handle/123456789/128 2026-04-07T21:44:30Z http://rulrepository.ru.ac.bd/handle/123456789/1117 Defence Expenditure and Economic Growth in South Asian Countries: An Econometric Analysis Rahaman, Md Mizanur This research study gives a comprehensive and objective discussion vis-a-vis critical analyses pertaining to the cointegration and causal relationship between defence expenditure and economic growth of selected South Asian countries namely Bangladesh, India, Pakistan, Sri Lanka and Nepal. Further this work examines the factors which determine the budgetary allocation of deference expenditure in south Asian countries in a panel framework, given their socioeconomic, political and strategic circumstances. The time series data on GDP, defence expenditure, inflation rate, size of the army, consumption expenditure, population size and inflation rate from 1973 to 2018 have been used and econometric techniques like Johansen Cointegration Test, Vector Autoregression (VAR), Granger Causality approach, Random Effects model (REM), Fixed Effects Model (FEM), Generalized Method of Moments (GMM) and pooled regression have been applied. While time series approaches, Johansen Cointegration Test, Vector Autoregression (VAR) and Granger Causality approach are employed to assess the cointegration relationship and pairwise causality among the variables; the panel approaches, REM, FEM and GMM are applied to evaluate the factors which determines the volume of the defence expenditure controlling the possible bias in panel data in term of endogeneity and heterogeneity. Results of Johansen cointegration test indicate the cointegrating relationship among the variables - GDP, defence expenditure, inflation rate, size of the army, consumption expenditure, population size and inflation rate for south Asian countries namely Bangladesh, India, Pakistan, Sri Lanka and Nepal at various levels. Vector autoregression analysis confirms this long-run relationship. Granger causality results show that unidirectional causality between defence expenditure and economic growth in some cases and bidirectional causality in other cases. Results of FEM, REM and GMM, on the one hand, show the relationship among defence expenditure, economic growth, army size, inflation rate, per capita income, consumption expenditures in south Asian countries at various degrees and magnitudes; and on the other hand highlight that population size, size of the army, lagged military expenditure and economic growth are most influencing factors which determine the size of defence expenditures of five countries namely Bangladesh, India, Pakistan, Sri Lanka and Nepal. Therefore, it is recommended that policies ought to be directed to accelerate improvements of defence sector through more budgetary allocation as these countries need to strengthen this sector in terms of bolstering security which create more congenial investment climate nationally and internationally that in turn help boost economic growth. Hence to ensure optimum use of defence expenditure, efforts should be taken towards the improvements in modernization of the defence sector. This can be achieved by planning and implementation of more military industries with a view to increase export from defence sector. This Thesis is Submitted to the Department of Economics, University of Rajshahi, Rajshahi, Bangladesh for The Degree of Doctor of Philosophy (PhD) 2020-01-01T00:00:00Z http://rulrepository.ru.ac.bd/handle/123456789/1094 Defence Expenditure and Economic Growth in South Asian Countries: An Econometric Analysis Rahaman, Md Mizanur This research study gives a comprehensive and objective discussion vis-a-vis critical analyses pertaining to the cointegration and causal relationship between defence expenditure and economic growth of selected South Asian countries namely Bangladesh, India, Pakistan, Sri Lanka and Nepal. Further this work examines the factors which determine the budgetary allocation of deference expenditure in south Asian countries in a panel framework, given their socioeconomic, political and strategic circumstances. The time series data on GDP, defence expenditure, inflation rate, size of the army, consumption expenditure, population size and inflation rate from 1973 to 2018 have been used and econometric techniques like Johansen Cointegration Test, Vector Autoregression (VAR), Granger Causality approach, Random Effects model (REM), Fixed Effects Model (FEM), Generalized Method of Moments (GMM) and pooled regression have been applied. While time series approaches, Johansen Cointegration Test, Vector Autoregression (VAR) and Granger Causality approach are employed to assess the cointegration relationship and pairwise causality among the variables; the panel approaches, REM, FEM and GMM are applied to evaluate the factors which determines the volume of the defence expenditure controlling the possible bias in panel data in term of endogeneity and heterogeneity. ---- This Thesis is Submitted to the Department of Economics, University of Rajshahi, Rajshahi, Bangladesh for The Degree of Doctor of Philosophy (PhD) 2020-01-01T00:00:00Z http://rulrepository.ru.ac.bd/handle/123456789/825 Rural-Urban Comparison of Human Resource Development in Northern Region of Bangladesh Rahman, Md. Zahedur Human resource development is an important issue in the socioeconomic arena of Bangladesh. It has now gained greater importance in the context of globalization. This study makes a comparison between rural and urban areas in terms of socioeconomic and human resource development indicators. It also attempts to estimate the rates of return to schooling in both rural and urban areas. In doing so, we use primary data collected from field household survey, using multistage stratified random sampling techniques. Secondary data are also used to make an overview of the study area. The study collects data from 600 households, among them 300 are selected from rural area and the rest 300 are taken from urban area, using random sampling technique. In order to estimate the private rates of returns to education in both rural and urban areas, we apply the basic and extended version of Mincerian earnings models. We also use regression equation to assess the influence of schooling on the life expectancy in both the areas. Logistic regression model is used to assess the effect of schooling on sanitation status in both the areas. We use similar specification for both the rural and urban areas. Survey results show that the socioeconomic and human development related indicators such as schooling, income, life expectancy, access to better sanitation are significantly high in urban area compared to rural area. Through this study, it is found that the child mortality rates are higher in rural area than in urban, and mothers' education influences the rates of child mortality. As regards the level of literacy, there has been marked disparity between urban and rural population. Urban people receive more education and their earnings are higher than rural people.Empirical findings indicate that the HDI value of urban area is higher than rural area. Results of the Mincerian earnings function suggest that returns to education increase with years of schooling in both rural and urban areas. Results show that returns to education are generally positive and significant both in rural and urban areas. The returns to education in rural areas (7.8 percent) are slightly higher than those in urban areas (7.5 percent).The rate of return on tertiary education is higher compared to primary, secondary and higher levels of education in both areas. Experience of individuals exerts no significant effect on earnings in rural area while experience leads to increase in earnings significantly in the urban area but has a non-linear effect both in rural and urban area. Regression results report that there is a positive and significant relationship between schooling and life expectancy. When we include all levels of education using dummies in a single regression equation, results suggest that secondary education significantly contribute to increase life expectancy in rural area. Findings also suggest that secondary education in both rural and urban areas and higher education in urban area have positive relationship with life expectancy and are collectively significant. Regression result implies that there exists a positive and significant relationship between health expenditure and life expectancy in both the areas. Logistic regression results signify that higher level of educated individuals are more likely to practice sanitation than their lower educated counterparts in both rural and urban areas, and urban population are more likely to have access to improved sanitation compared to rural population. Among the professions, service holders are more likely to have better access to sanitation facilities in both the areas. So there are marked disparities between rural and urban areas in terms of socioeconomic and human resource development indicators. Right and effective policies that can reduce theinequality between rural and urban areas in terms of socioeconomic indicators are required. To eliminate urban-rural discrimination, budgetary allocation should be transferred to education and health in proportion to rural-urban population. So the government has to make investment in education, health and other social services for all classes of people, but much emphasis on the rural should be given. This Thesis is Submitted to the Department of Economics, University of Rajshahi, Rajshahi, Bangladesh for The Degree of Doctor of Philosophy (PhD) 2018-01-01T00:00:00Z http://rulrepository.ru.ac.bd/handle/123456789/795 Environmental Impact of Foreign Direct Investment in Bangladesh Afroz, Nahida Rapid economic growth is the prime objective of many developing countries as economic growth results in poverty alleviation and welfare enhancement of the people. However, most of the developing countries lack sufficient amount of capital to invest for attaining economic growth. In this context, foreign direct investment (FD/) is recognized as a key component of investment in those developing countries. However, inflow of FD/ can have adverse impacts on the environment of the host countries as foreign investors sometimes move their operations to developing countries in order to take the advantage of less stringent environmental regulations in those countries. There are several studies on the environmental impacts of foreign direct investment focusing on Pollution Heaven hypothesis in the context of different countries. However, scant attention has been given on the FDI-environment relationship in the context of Bangladesh. Thus, the main objective of this study is to investigate the empirical relationship between foreign direct investment (FD/) and environmental degradation as it applies to selected air, water and toxic pollutants in Bangladesh. Emphasis has been given on the linkages between FD/, composition of production, composition of export and environmental quality in Bangladesh. Thereby, this research addresses the issues, methods and policy implications concerning the linkages between foreign direct investment and environmental degradation first in a way of literature study and then focusing on a modeling analysis on the linkages between FD/ and its relevant environmental impact in Bangladesh. This study also investigates whether there has been a greater inflow of FD/ into pollution-intensive sectors in the post-trade liberalization period. Ordinary Least Squares (OLS) and fixed effect estimation techniques were used to examine the environmental impact of FD! in Bangladesh, where three functions viz. production composition function, export composition function and FD! inflow function is constructed following the Cobb-Douglas production function approach. This study used panel data set of 3-digit BSIC level manufacturing industries and applied /PPS coefficients invented by the World Bank in generating the industrial pollution data for Bangladesh. The empirical results suggest that there has been a change in the composition of production in Bangladesh that parallels the gradual opening up of the economy and inflow of FDJ It is found that over the sample period manufacturing production gradually became pollution intensive in terms of toxic pollutants. Manufacturing production in Bangladesh was found mildly associated with air pollutants, and was not associated with water pollutants. It is found that pollution intensity in exports of Bangladesh have reduced over the sample period while only S02 intensity has increased during the observed period. Finally, we found consistently robust results which indicate that foreign direct investments have been inflowing into higher air pollution intensive and toxic pollution intensive manufacturing sectors. A disaggregated analysis showed that manufacturing production has become more pollution intensive during the post trade liberalization period. Thus, it can be concluded that while the production composition function and FD! inflow function supported the pollution heaven hypothesis mildly, the export composition function did not support that hypothesis in case of Bangladesh at least in the observed period. This Thesis is Submitted to the Department of Economics, University of Rajshahi, Rajshahi, Bangladesh for the degree of Doctor of Philosophy (PhD) 2013-01-01T00:00:00Z