Macroeconomic measures of Bangladesh and Turkish economy

Abstract

Purpose. The purpose of this research is to examine the major factors that influence sustainable economic growth and offer evidence-based policy guidance for emerging economies. Methodology. A timeseries analysis using data from the World Bank and IMF is conducted using Augmented DickeyFuller tests to ensure stationarity, Johansen cointegration to detect long-run relationships, and quantile regression to handle non-normality and multicollinearity. Findings. Quantile regressions indicate that capital accumulation in Bangladesh has an elasticity of approximately 1.65–1.72 (p < 0.01), the labor force is negatively associated with GDP (coefficients -1.69 to -2.82, p < 0.01), exports exhibit an elasticity of ≈0.81 (p < 0.01), and naturalresource rents depress GDP by ≈ -0.25 to -0.29 (p < 0.01). For Turkey, exports (≈0.38–0.39, p < 0.01) and FDI inflows (≈0.13, p < 0.05) are positively and significantly associated with GDP, and capital accumulation is positive and significant in several specifications (up to ≈1.01, p < 0.01). Originality. The study uses quantile regression to jointly evaluate multiple macroeconomic variables and contrasts two emerging economies with distinct economic structures - Bangladesh’s labor-intensive, export-driven model versus Turkey’s diversified industrial base, and highlights unique patterns such as labor inefficiency and resource dependency. Practical values. Policy-makers are advised to prioritize capital investment, enhance labor-market efficiency, diversify exports, and try to attract sustainable foreign investment. Reducing dependence on natural-resource rents and labor-intensive sectors can help emerging economies like Bangladesh and Turkey achieve more resilient, broad-based growth.