Shamim Uddin
Department of Economics, Begum Rokeya University, Rangpur

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The Impact of Money Supply on National Income: An Empirical Analysis of Bangladesh Shamim Uddin
Mustard Journal De Ecobusin Vol. 1 No. 3 (2024): Mustard Journal De Ecobusin (MJDE)
Publisher : Generasi Sains Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37899/mjde.v1i3.64

Abstract

This study explores the complex issue of relationship between money supply and national income in Bangladesh. It narrates the determinants of per capita GDP based on data on seventeen years of information on 2006-2022. It uses a multiple regression model to assess different macroeconomic variables, such as the inflation rate, GDP growth, the real interest rate (RIR), and the narrow (M1), broad (M2), and total (M3) money aggregates and, therefore, provides a holistic examination of the factors that affect the per capita GDP. The model scores highly in explanatory power, as its R-squared estimate suggests that the chosen variables have an explanatory power that is capable of attributing a significant part of the range of variation of per capita GDP. More importantly, real interest rates have a statistically significant negative correlation with per capita GDP, such that an increase in the real interest rates is associated with a decrease in national income. On the contrary, the correlation between the per capita GDP and the different money supply indicators (M1, M2 and M3) have minimal statistical significance and this indicates that other determinants have a stronger impact on national income in the Bangladeshi environment. The findings provide policymakers and economists with practical information that is relevant to the management of economic growth and the monetary policy in Bangladesh.
Assessing the Impact of Credit Management on Loan Utilization and Financial Performance in ASA International Bangladesh Shamim Uddin
Mustard Journal De Ecobusin Vol. 1 No. 4 (2024): Mustard Journal De Ecobusin (MJDE)
Publisher : Generasi Sains Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37899/mjde.v1i4.76

Abstract

Nigeria’s fiscal policy has largely centered on short-term objectives such as revenue generation, with inadequate focus on long-term structural reforms. The economy remains characterized by an inefficient tax system and a persistent dependence on oil revenue despite efforts toward diversification. This study investigates the impact of fiscal policy, economic diversification, and economic growth in Nigeria using annual time-series data from the Central Bank of Nigeria, National Bureau of Statistics, and World Bank covering 1984–2023. Employing descriptive statistics, the Augmented Dickey-Fuller and Phillips-Perron unit root tests, and the ARDL model, the study uses real GDP as the dependent variable and tax, government expenditure, domestic debt, gross fixed capital formation, and diversification index as independent variables. The results indicate that a 10% increase in tax, government expenditure, and diversification index leads to a 0.76%, 1.31%, and 0.84% rise in economic growth, respectively, while a 10% rise in domestic debt reduces growth by 2.69%. The findings show that tax, domestic debt, and diversification index significantly influence growth. Hence, the study recommends strengthening tax mobilization to reduce dependence on oil revenues and enhance macroeconomic stability.