Impact of ADP on GDP in Bangladesh: A Cointegration Approach

Abstract

The main purpose of this paper is to introduce and interpret the relation between governments Annual Development Programme (ADP) and economic growth. ADP traditionally holds the main structure of Bangladesh economy. We consider ADP is the main determinant of Gross Domestic Product (GDP) in Bangladesh and also consider the Gross Capital Formation (GCF) for more reliable results. This paper uses various econometric tools where time series analysis is gained main focus to find out the proper result. According to our result, there is a positive impact of ADP on economic development. Findings point out that keeping the high level of public planning in Bangladesh together with improvement in institutional surroundings would be beneficial for economic growth. It has been widely documented that ADP can promote economic growth, when it is efficiently handled by the authority.