Urbanization and Income in Bangladesh: An Empirical Analysis

Authors

  • Anowara Khanam Bangladesh University of Business and Technology (BUBT)
  • Md. Shariful Islam Bangladesh University of Professionals (BUP)

DOI:

https://doi.org/10.18533/job.v4i2.122

Keywords:

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

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.

Author Biographies

  • Anowara Khanam, Bangladesh University of Business and Technology (BUBT)
    Assistant Professor, Department of Economics
  • Md. Shariful Islam, Bangladesh University of Professionals (BUP)
    Assistant Professor, Department of Economics

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Published

2019-10-01

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