Regional development in Bangladesh: a spatial analysis through input-output model

Abstract

Bangladesh is expenencmg regional imbalance since its birth. Such imbalances affected the regions in many ways including their economic structures. This research work repres;nts an attempt where the economic systems of six regions of the country namely Barisal, Chittagong, Dhaka, Khulna, Rajshahi and Sylhet are evaluated with the help ofinput-output technique. The input-output model has enabled to perform several types of analyses of the regional economies, the implications of which for policy can hardly be over emphasized. It is found that in terms of output multiplier, sectoral backward and forward linkages, the economic sectors interact more strongly in developed regions (Dhaka and Chittagong) rather than in the less developed parts. Another important finding of this study is the economic landscapes of the regions which highlight the stimulating role of industry sector in fostering the growth of developed regions. Finally, regional impacts are assessed due to an increase in the investment expenditure for the thirteen major economic sectors. The results of this exercise also revealed that the impacts are smaller in the under developed regions compared to more developed regions. Based on these findings an effort is provided to motivate the planners and policy makers to integrate regional and sectoral approach to ensure the ultimate goal of national development.