1 AIT Asian Institute of Technology

Determinants of inflation in Bangladesh : an Empirical analysis

AuthorHasan, Muhammad Kamrul
NoteA Project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance, School of Management
PublisherAsian Institute of Technology
AbstractIt has been tried to find out both the demand side as well as the supply side determinants of inflation in Bangladesh. The time series data from 1981 to 2014 has been used to explore the relationship. The data sources include the time series data of Bangladesh Bank and the World Bank data base. The dependent variable is inflation as measured by the annual consumer price index and the independent variables are GDP growth rate, broad money (M2) growth rate, growth rate of import and the average deposit rate as offered by the banks. At first the non stationary data are transformed into the stationary one and then after running the regression it is found that money supply growth and GDP growth have negative relationship with the CPI inflation where as the growth rate of import and deposit rate offered by the banks have positive relationship with the CPI inflation. The model is almost fulfilling all the criteria of a good regression model and its residual terms are normally distributed having no Heteroskedasticity problem as well as the residual terms have no autocorrelation problem.
Year2016
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Roy, Shyamal ; Venkatesh, Sundar
Examination Committee(s)Weerakoon A. Wijewardena;Zimmermann, Willi
Scholarship Donor(s)Bangladesh Bank (Central Bank of Bangladesh)


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