Demographic Dividend, Digital Innovation, and Economic Growth: Bangladesh Experience

Loading...
Thumbnail Image
File version

Version of Record (VoR)

Author(s)
Sarker, Tapan
Zaman, Kazi Arif Uz
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Date
2021
Size
File type(s)
Location
Abstract

This study aims to understand the linkages between demographic dividends, digital innovation, and economic growth, using Bangladesh as a case study. It adopts a three-stage least squares (3SLS) model to explore how and to what extent the digitization and demographic transition lead towards faster economic growth in Bangladesh. Results imply that economic growth is significantly influenced both by digitization and the demographic transition. Estimation reveals that with an increase of 1 percentage point in the number of internet users, the GDP would increase by 0.11%, ceteris paribus, while a 10-basis point decrease in the dependency ratio would increase the GDP by 7.2%, on average. The key driving factors for digitization are the labor participation rate, workers’ productivity, and mobile penetration. The urbanization rate, however, adversely impacts the rise in internet users. Estimations imply that the Human Development Index (HDI) score and urbanization rate have significant negative impacts on the dependency ratio, while female participation in the labor force has a positive impact on it. The study provides insights to assist the government and policymakers in framing a roadmap on how Bangladesh could utilize demographic transition to achieve faster economic growth while fostering digitization and technological innovation. Lessons learned could also be used in other developing countries in the Asia and Pacific region.

Journal Title
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
DOI
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement

© The Author(s) 2021. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported (CC BY-NC-ND 3.0) License, which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.

Item Access Status
Note
Access the data
Related item(s)
Subject

Business analytics

Political economy and social change

Persistent link to this record
Citation

Sarker, T, Demographic Dividend, Digital Innovation, and Economic Growth: Bangladesh Experience, 2021

Collections