Finance-Growth Nexus in Bangladesh: Is it Important to Quantify Financial Development?

This study aims to examine empirically whether financial development can promote economic growth in Bangladesh. It employs the Autoregressive Distributed Lag (ARDL) model and takes annual data from 1987 2019. confirms a cointegrating relationship between growth. The nature of this is unidirectional, running outcome that development, as proxied by private sector loans broad money supply, augments long-run. As for control variables, gross domestic savings show an insignificant impact on when are development. However, it substantial supply More interestingly, trade openness, another variable, suggests adverse has positive influence short-run. In short-run, at lag 2 significantly affect findings advocate robust dynamic structure Bangladesh critical success factor developing country's