Unravelling the Nexus between Economic Factors and Gross Domestic Product in Bangladesh

Bangladesh is one of the most populous countries in the world with more than 163 million people. Dhaka, as the capital city, is the main economic, political, and cultural hub of this nation. Economic growth is measured by gross domestic product and the factors of economic growth are cross-cutting factors. Gross Domestic Product (GDP) is believed to be an indicator of a country’s economic condition. Bangladesh’s GDP increased at a pace of 8.15% in fiscal 2018-2019 as per the base year 2005-2006. By the year 2019, Bangladesh has become the seventh fastest-growing economy in the world. This paper used secondary data from the World Bank for the fiscal year from 2010 to 2020. This paper used a multiple regression analysis model for the macroeconomic factors. The aim of this study is to measure the effects of macroeconomic factors considering GDP as the dependent variables and inflation rate, import, and export are considered as independent. This paper represents that import and export are positively associated factors with GDP whereas inflation rate is a negatively associated factor. It is recommended that investment in the Bangladesh export sector should also be enhanced to overcome the present obstacles of the economy and therefore foreign direct investment (FDI) should also try to be enhanced by attracting the contemplation of foreign stakeholders from both developing and developed countries. It was found that import and export have a positive relation with GDP and inflation whereas exchange rate has a negative association with GDP. This study concluded by revealing the importance of conducting a further study by considering more economic variables to measure economic growth as a whole.