Relationship between Economic Growth and Governance in Bangladesh

Abstract

In Bangladesh, we have seen major positive changes in the economy, including the attainment of GDP growth more than 8% and meeting up initial eligible criteria for graduation from LDC to developed Country. Despite the fact that the economy of Bangladesh is growing in a much faster rate than many other developing countries, the reports on the governance indicators are showing worsening in all the categories including corruption control, rule of law, government effectiveness, etc. Whether there is a relationship between economic development and governance in terms of which comes first is a long-lasting debate and many researches have been taken place in different contexts and from different perspectives. This paper has examined the relationship of economic development and governance of Bangladesh context. In doing so, it has employed multi regression model to assess the relationship using various indices. The analyses show some anomalies and weird findings from which the relationship cannot be explained easily as perceived. Therefore, this study recommends for further research using more sophisticated statistical and economic model that help the formulation and implementation of policy strategies in Bangladesh.