BANGLADESH’S UNEMPLOYMENT CHALLENGES: ANALYZING THE INFLUENCE OF KEY ECONOMIC INDICATORS
Author Name: 1. MD Rakibuzzaman, 2. Mis.Jannatul Ferdous, 3. Md. Hasibul Hassan Santo, 4. Tarek Mahmud
Volume/Issue: 06/07
Country: Bangladesh
DOI NO.: 08.2020-25662434 DOI Link: https://doi-ds.org/doilink/12.2025-83877675/UIJIR
Affiliation:
- Daffodil International University, Dhaka, Bangladesh
- Keshab Chandra College, Jhenaidah, Bangladesh
- University of Barishal, Bangladesh
- Daffodil International University, Dhaka, Bangladesh
ABSTRACT
Unemployment remains a persistent challenge in Bangladesh and other South Asian economies. This study examines the macroeconomic determinants of unemployment in Bangladesh, focusing on GDP growth, inflation, population dynamics, foreign direct investment (FDI), female labor force participation, and rural–urban migration. Using annual time-series data from 1995 to 2019, the study applies the Augmented Dickey–Fuller (ADF) test, least squares estimation, co-integration analysis, multicollinearity diagnostics, and Granger causality tests to assess long-run and causal relationships. Results indicate that unemployment is stationary at first difference, while GDP, inflation, and FDI are stationary at level. Cointegration tests confirm a long-run relationship, with GDP growth and FDI exerting a significant negative impact on unemployment. Granger causality further shows unidirectional effects from GDP and FDI to unemployment. These findings underscore the importance of sustained economic growth and foreign investment for reducing unemployment and informing policy.
Key words: Bangladesh, Unemployment.
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