The Role of Digitalization in Bangladesh’s Economic Development: A Study of Digital Technologies, Ecommerce and Fintech

Authors

  • Fayaz Imtiaz School of Economics and Trade, Hunan University, Changsha, 410082, China Author
  • Asif Ud Duha School of Economics and Trade, Hunan University, Changsha, 410082, China Author
  • Sayed Ahmed Reza Hadi School of Economics and Trade, Hunan University, Changsha, 410082, China Author
  • Molla Md Alim School of Economics and Trade, Hunan University, Changsha, 410082, China Author

DOI:

https://doi.org/10.61506/01.00553

Keywords:

Digitalization, Economic Development, Digital Technologies, Ecommerce and Fintech

Abstract

The main research purpose of this research study is to understand the influence of Digitalization in the Bangladeshi context, considering digital technologies, e-Commerce and fin tech. The study aims to understand components mentioned above in relation with each other and in relation to economic growth, financial adoption and markets growth. We conducted a research on Bangladesh regarding " The Role of Digitalization in Bangladesh’s Economic Development: A Study of Digital Technologies, Ecommerce and Fintech" using data from selected emerging nations. Data was gathered from the National Bank of Bangladesh, covering the period from 2001 to 2022, alongside data from Organizations such as the World Bank, IMF, Asian Development Bank, and Bangladesh Bureau of Statistics provide extensive datasets. This paper focuses on the impact of digitalization, Electronic Commerce (e-Commerce), and Fintech in the enhancement of GDP and Economic growth in Bangladesh. The analysis shows that digitalization is a game changer for the future growth of the economy, which is evidenced by the results of research in the spheres of e-commerce and fintech opportunities. Thus, digitalization appeared to be the most dominant variable, exhibiting a strong and positive rapid growth coefficient in all the models. As a form of connectivity, a means of improving the efficiency of business processes, and a basis for the creation of new technologies it has become an integral part of today’s economy. The findings further imply that there is scope to significantly expand digital inputs that exist in Bangladesh and need more investment and policies for further optimization.

References

Abeysekara, N. & Bandara, Y. (2022). Untold Story of Sri Lanka: Paradox in Education, ICT and Development in Post—Colony. Managing the Post-Colony South Asia Focus: Ways of Organising, Managing and Living. Springer. DOI: https://doi.org/10.1007/978-981-19-2988-5_4

Adejumo, O. O. (2020). Environmental quality vs economic growth in a developing economy: complements or conflicts. Environmental Science and Pollution Research, 27, 6163-6179. DOI: https://doi.org/10.1007/s11356-019-07101-x

Ahmad, F., Draz, M. U., Chandio, A. A., Ahmad, M., SU, L., Shahzad, F. & Jia, M. (2022). Natural resources and environmental quality: exploring the regional variations among Chinese provinces with a novel approach. Resources Policy, 77, 102745. DOI: https://doi.org/10.1016/j.resourpol.2022.102745

Ahmed, F., ALI, I., KOUSAR, S. & AHMED, S. (2022). The environmental impact of industrialization and foreign direct investment: empirical evidence from Asia-Pacific region. Environmental Science and Pollution Research, 1-15. DOI: https://doi.org/10.1007/s11356-021-17560-w

Alam, M. J., Hassan, R., & Ogawa, K. (2023). Digitalization of higher education to achieve sustainability: Investigating students’ attitudes toward digitalization in Bangladesh. International Journal of Educational Research Open, 5, 100273. DOI: https://doi.org/10.1016/j.ijedro.2023.100273

Alam, Q., Rahman, A., & Islam, S. R. U. (2021). The Economic Development of Bangladesh in the Asian Century: Routledge, US. DOI: https://doi.org/10.4324/9781003088165

Ali, M., KHAN, Z. H. & HOSSAIN, M. E. (2022). Comparative Advantage, Export Diversification, Intra-Industry Trade, and Economic Growth Nexus: Evidence from Bangladesh's Textile and Clothing Industry. AIUB Journal of Business and Economics, 19, 226-250.

Amin, S. (2024). Critical analysis of ICT connectivity in rural Bangladesh: importance, constraints, and the way forward.

Arif, A., SADIQ, M., Shabbir, M. S., Yahya, G., Zamir, A. & Bares lopez, L. (2022). The role of globalization in financial development, trade openness and sustainable environmental-economic growth: evidence from selected South Asian economies. Journal of Sustainable Finance & Investment, 12, 1027-1044. DOI: https://doi.org/10.1080/20430795.2020.1861865

Aziz, A. (2020). Digital inclusion challenges in Bangladesh: The case of the National ICT Policy. Contemporary South Asia, 28(3), 304-319. DOI: https://doi.org/10.1080/09584935.2020.1793912

Bond-Smith, S. & Mccann, P. (2021). Incorporating space in the theory of endogenous growth: Contributions from the new economic geography. Handbook of Regional Science, 635-659. DOI: https://doi.org/10.1007/978-3-662-60723-7_14

Cai, X., Zhu, B., Zhang, H., Li, L. & Xie, M. (2020). Can direct environmental regulation promote green technology innovation in heavily polluting industries? Evidence from Chinese listed companies. Science of the total environment, 746, 140810. DOI: https://doi.org/10.1016/j.scitotenv.2020.140810

Chapagain, P. S. & AASE, T. H. (2020). Changing forest coverage and understanding of deforestation in Nepal Himalayas. Geographical Journal of Nepal, 13. DOI: https://doi.org/10.3126/gjn.v13i0.28133

Chaudhary, R. P., Uprety, Y., Acharya, H. R. & Rimal, S. K. (2023). Deforestation in Nepal: status, causes, consequences, and responses. Biological and Environmental Hazards, Risks, and Disasters. Elsevier. DOI: https://doi.org/10.1016/B978-0-12-820509-9.00003-4

Chu, X., Cui, W., Xu, S., Zhao, L., Guan, H. & Ge, Y. (2023). Multiscale Time Series Decomposition for Structural Dynamic Properties: Long‐Term Trend and Ambient Interference. Structural Control and Health Monitoring, 2023, 6485040. DOI: https://doi.org/10.1155/2023/6485040

Cusser, S., Helms IV, J., Bahlai, C. A. & Haddad, N. M. (2021). How long do population level field experiments need to be? Utilising data from the 40‐year‐old LTER network. Ecology Letters, 24, 1103-1111. DOI: https://doi.org/10.1111/ele.13710

Dharmadasa, R. & Karunarathna, G. (2022). Migration, remittances and household welfare: evidence from Sri Lanka. Economic Research, 10, 1. DOI: https://doi.org/10.4038/sljer.v10i1.174

Dimenna, J. (2022). Globalization and Trade Liberalization: The Impact on Bangladesh's Textile Industry.

Eyüboğlu, S. & UYSAL, S. Y. (2022). Examining the Relationship between Preprimary Education and Economic Growth in Developing Countries. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD), 14, 468-484. DOI: https://doi.org/10.20990/kilisiibfakademik.1151440

Ghorashi, A. H. & Maranlou, H. (2021). Essential infrastructures and relevant policies for renewable energy developments in oil-rich developing countries: Case of Iran. Renewable and Sustainable Energy Reviews, 141, 110839. DOI: https://doi.org/10.1016/j.rser.2021.110839

Haque, M. A., Zhang, X., Akanda, A. E. A., Hasan, M. N., Islam, M. M., Saha, A., . . . Rahman, Z. (2023). Knowledge Sharing among students in social media: the mediating role of family and technology supports in the academic development nexus in an emerging country. Sustainability, 15(13), 9983. DOI: https://doi.org/10.3390/su15139983

Hasnath, S. A. (2020). Uneven development in Bangladesh: a temporal and regional analysis. Development Studies in Regional Science: Essays in Honor of Kingsley E. Haynes, 199-219. DOI: https://doi.org/10.1007/978-981-15-1435-7_12

He, A., Xue, Q., Zhao, R. & Wang, D. (2021). Renewable energy technological innovation, market forces, and carbon emission efficiency. Science of The Total Environment, 796, 148908. DOI: https://doi.org/10.1016/j.scitotenv.2021.148908

Ho, T. L. & Ho, T. T. (2021). Economic growth, energy consumption and environmental quality: Evidence from vietnam. International Energy Journal, 21, 213-224.

Hossain, M. (2020). Macroeconomic policy, economic growth and poverty reduction in Bangladesh: An overview. Bangladesh's Macroeconomic Policy: Trends, Determinants and Impact, 3-18. DOI: https://doi.org/10.1007/978-981-15-1244-5_1

Hossen, M. D., Abedin, M. Z., Chowdhury, T. M., Islam, Z., & Kabir, M. R. (2025). Unveiling the Impact of E-Governance on the Transformation from Digital to Smart Bangladesh. Pakistan Journal of Life & Social Sciences, 23(1). DOI: https://doi.org/10.57239/PJLSS-2025-23.1.009

Hulio, Z. H., Jiang, W. & Chandio, G. S. (2022). Power policies, challenges, and recommendations of renewable resource assessment in Pakistan. Energy Exploration & Exploitation, 40, 947-976. DOI: https://doi.org/10.1177/01445987211064678

Ike, G. N., Usman, O., Alola, A. A. & Sarkodie, S. A. (2020). Environmental quality effects of income, energy prices and trade: the role of renewable energy consumption in G-7 countries. Science of the Total Environment, 721, 137813. DOI: https://doi.org/10.1016/j.scitotenv.2020.137813

Islam, M. M. (2024). An empirical analysis of foreign direct investment, ready-made garment exports, and employment in Bangladesh. Journal of International Economics and Management, 24, 17-39. DOI: https://doi.org/10.38203/jiem.024.1.0078

Islam, M. S. (2021). Ready-made garments exports earning and its contribution to economic growth in Bangladesh. GeoJournal, 86, 1301-1309. DOI: https://doi.org/10.1007/s10708-019-10131-0

Islam, M. S., Parvin, R., Milon, M., & Das, M. K. (2023). The impact of gross domestic product on the Bangladesh Stock Market: An empirical analysis. International Journal of Finance and Accounting, 12(1), 1-12.

Jabeen, G., Ahmad, M. & Zhang, Q. (2021). Factors influencing consumers’ willingness to buy green energy technologies in a green perceived value framework. Energy Sources, Part B: Economics, Planning, and Policy, 16, 669-685. DOI: https://doi.org/10.1080/15567249.2021.1952494

Jahan, S. (2022). Human Development in Bangladesh: A Dynamic Trajectory The Emergence of Bangladesh: Interdisciplinary Perspectives (pp. 157-176): Springer. DOI: https://doi.org/10.1007/978-981-16-5521-0_10

Jan, M. Z., Ullah, K., Abbas, F., Khalid, H. A. & Bajwa, T. M. (2023). Barriers to the adoption of social welfare measures in the electricity tariff structure of developing countries: A case of Pakistan. Energy Policy, 179, 113648. DOI: https://doi.org/10.1016/j.enpol.2023.113648

Kamruzzaman, M. (2024). Information Security for an Information Society in Bangladesh.

Khalid, S., Raza, A., Yousaf, M. Z., Mirsaeidi, S. & Zhichu, C. (2023). Recent Advances and Future Perspectives of HVDC Development in Pakistan: A Comprehensive Review. IEEE Access. DOI: https://doi.org/10.1109/ACCESS.2023.3283431

Khan, I., HOU, F. & LE, H. P. (2021). The impact of natural resources, energy consumption, and population growth on environmental quality: Fresh evidence from the United States of America. Science of the Total Environment, 754, 142222. DOI: https://doi.org/10.1016/j.scitotenv.2020.142222

Khan, M. I., Khan, I. A. & Chang, Y. C. (2020). An overview of global renewable energy trends and current practices in Pakistan—A perspective of policy implications. Journal of Renewable and Sustainable Energy, 12. DOI: https://doi.org/10.1063/5.0005906

Khan, S. R. (2022). Economic successes in South Asia: a story of partnerships, Routledge. DOI: https://doi.org/10.4324/9781003176411

Khatun, S., Shaon, S. M., & Sadekin, N. (2021). Impact of poverty and inequality on economic growth of Bangladesh. Journal of Economics and Sustainable Development, 12(10), 107-120.

Kumar, R., Birn, A.-E., Bhuyan, R. & Wong, J. P.-H. (2022a). Universal health coverage and public-private arrangements within Sri Lanka's mixed health system: Perspectives from women seeking healthcare. Social Science & Medicine, 296, 114777. DOI: https://doi.org/10.1016/j.socscimed.2022.114777

Kumar, R., Kumar, A. & Saikia, P. (2022b). Deforestation and forests degradation impacts on the environment. Environmental Degradation: Challenges and Strategies for Mitigation. Springer. DOI: https://doi.org/10.1007/978-3-030-95542-7_2

Liu, Z., Hasan, M. M., Xuan, L., Saydaliev, H. B., Lan, J., & Iqbal, W. (2023). Trilemma association of education, income and poverty alleviation: managerial implications for inclusive economic growth. The Singapore Economic Review, 68(04), 1469-1492. DOI: https://doi.org/10.1142/S0217590822440052

Mahmood, A. (2023). Revisiting Pakistan's Energy Crisis and CPEC Power Projects: Prospects, Challenges, and Remedies for Energy, Environmental, and Debt Sustainability. Journal of Professional Research in Social Sciences, 10, 1-23.

Mollik, M. A., & Ananna, A. K. (2024). The impact of globalization on technology-oriented small and medium-sized enterprises (SMEs) in the Bangladeshi market.

Mujeri, M. K., & Mujeri, N. (2020). Bangladesh at fifty: Moving beyond development traps: Springer. DOI: https://doi.org/10.1007/978-3-030-56791-0

Mujeri, M. K., & Mujeri, N. (2021). Structural Transformation of Bangladesh Economy: Springer. DOI: https://doi.org/10.1007/978-981-16-0764-6

Nasution, M. D. T. P., Rafiki, A., Lubis, A., & Rossanty, Y. (2021). Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia. Journal of Science and Technology Policy Management, 12(2), 256-282. DOI: https://doi.org/10.1108/JSTPM-03-2020-0060

Ordóñez de Pablos, P., Almunawar, M. N., & Anshari, M. (2024). Strengthening Sustainable Digitalization of Asian Economy and Society: IGI Global. DOI: https://doi.org/10.4018/979-8-3693-1942-0

Osmani, S. (2021). Eradicating poverty and minimizing inequality for ensuring shared prosperity in Bangladesh. a background paper prepared for the Perspective Plan, 2041.

Paul, M., Upadhyay, P., & Dwivedi, Y. K. (2020). Roadmap to digitalisation of an emerging economy: a viewpoint. Transforming Government: People, Process and Policy, 14(3), 401-415. DOI: https://doi.org/10.1108/TG-03-2020-0054

Putera, W., Iriani, N., Julian, S. F., Rahman, A., & Sucianti, R. (2023). Digital Business Development Strategy as a Determinant of Business Competitiveness Through E-Commerce of MSMEs Products in Indonesia. European Journal of Theoretical and Applied Sciences, 1(6), 804-829. DOI: https://doi.org/10.59324/ejtas.2023.1(6).79

Rahman, M. A., & Parvin, R. A. (2024). Bangladesh's Digital Evolution: Drivers, Impacts, and Future Opportunities. DOI: https://doi.org/10.20944/preprints202410.0474.v1

Shahbaz, M., Ozturk, I., & Ali, A. (2016). Does financial development lower environmental quality in Saudi Arabia? Fresh evidence from linear and non-linear specifications. International Journal of Economics and Empirical Research (IJEER), 4(7), 376-392.

Sulehri, F. A., Audi, M., Ashraf, M. S., Azam, H., Bukhari, S. A. F., & Ali, A. (2024). Empirical Insights into Financial Integration: Fintech Credit and Regulatory Dynamics. Journal of Asian Development Studies, 13(2), 1691-1705. DOI: https://doi.org/10.62345/jads.2024.13.2.133

Sultana, S. (2024). Exploring Opportunities for Economic Growth: Enhancing the Digital Marketing Strategy of SMEs in Bangladesh.

Titumir, R. A. M. (2021). Numbers and narratives in Bangladesh's economic development: Springer. DOI: https://doi.org/10.1007/978-981-16-0658-8

Titumir, R. A. M., & Titumir, R. A. M. (2021). Poverty and inequality in Bangladesh. Numbers and narratives in Bangladesh's economic development, 177-225. DOI: https://doi.org/10.1007/978-981-16-0658-8_7

Downloads

Published

2024-08-28

Issue

Section

Articles

How to Cite

Imtiaz, F. ., Duha, A. U. ., Hadi, S. A. R. ., & Alim, M. M. . (2024). The Role of Digitalization in Bangladesh’s Economic Development: A Study of Digital Technologies, Ecommerce and Fintech. Bulletin of Business and Economics (BBE), 13(3), 649-660. https://doi.org/10.61506/01.00553