Urbanization and Income in Bangladesh: An Empirical Analysis

Anowara Khanam, Md. Shariful Islam

Abstract


This paper investigates the causal relationship between urbanization and per capita income of Bangladesh for the sample period of 1972- 2018. Both the Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) tests are applied to find the existence of unit root in each of the time series data collected from World Development Indicators (WDI). To observe the long-run relationship between urbanization and per capita income this study relies on Johansen- Juselius cointegration technique. Empirical results of this paper confirm the presence of long-run relationship between the variables. The Granger causality test shows that causality between urbanization and per capita income is bi-directional.


Keywords


Urbanization; Per Capita Income; Johansen- Juselius cointegration technique; Long-run Relationship; Granger Causality Test

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DOI: http://dx.doi.org/10.18533/job.v4i2.122

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Copyright (c) 2019 Anowara Khanam, Md. Shariful Islam

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.