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Md.Thasinul Abedin
''Impact of Banking Sector Efficiency and Profitability on Bangladesh Economy''
( 2017, Vol. 37 No.3 )
This paper attempts to investigate how banking sector efficiency and profitability along with per capita electricity consumption, domestic investment, trade openness, external debt, and government expenditures affect Bangladesh economy both in the short run and in the long run by using time series data from 1972-2013. There exists cointegrating relationship among the variables in equation (1). Both efficiency and profitability have positive impact on per capita gross domestic product in the long run but the impact of efficiency is insignificant unlike that of profitability. Therefore, over time bank efficiency and profitability will boost up the Bangladesh economy.
Keywords: Banking Sector Efficiency, Banking Sector Profitability, Short Run Impact, and Long Run Impact
JEL: G2 - Financial Institutions and Services: General
C1 - Econometric and Statistical Methods: General
Manuscript Received : Jan 02 2017 Manuscript Accepted : Jul 23 2017

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