Open AccessFinancial repression and economic distortions to the stage of economic growth and agricultural development in Bangladesh
Author(s) -
Sadequl Islam
Publication year - 2010
Publication title -
journal of the bangladesh agricultural university
Language(s) - English
Resource type - Journals
eISSN - 2408-8684
pISSN - 1810-3030
DOI - 10.3329/jbau.v6i2.4845
Subject(s) - financial repression , economics , productivity , finance , agriculture , financial system , economic growth , interest rate , ecology , biology
Financial repression in a developing country is not new to us.The government may take policy for financial repression due to easy collection of inflation tax to the stage of economic development.This study is concerned to find the positive relationship between financial development and economic growth and productivity in the economy of Bangladesh.The research concluded that the financial repression has a negative relationship to the economic growth and productivity in the economy of Bangladesh. This study found evidence the effect of financial repression is positive to the financial development in Bangladesh as it was to the high growth period in Japan.But the scenario was different for Latin American countries.Transition to the financial development from the stage of financial repression to the stage of financial liberalization is found positive to the economic growth and productivity in Bangladesh.