Unemployment Problem in Bangladesh and Its Impact on Economic Growth
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This paper analyzes the relationship between unemployment and its impact on economic growth in Bangladesh. We have tested the relation between unemployment and economic growth using a panel data covering four South-Asian counties including Bangladesh for over 20 years. The result has been found that the economic growth has significant effect on unemployment and there is a negative relationship between economic growth and unemployment. The model is adopted for testing relationship is the Fixed and Random Effect Model, Hausman test, using Breusch- Pagan LM test of independence (testing for Cross-Sectional Dependence), Pesaran Test and Wald test (Modified Wald Test). We have tried to compare four South-Asian countries’ like India, Pakistan, Nepal and Bhutan situation of unemployment with Bangladesh for the time period 1990-2010. We have suggested some recommendations to reduce the impact of this problem.