THE IMPACT OF INTERNET ON ECONOMIC GROWTH IN BANGLADESH

The purpose of this paper is two fold. The first goal is to reveal that an increase in the number of Internet users has a positive effect on economic growth within a nation. Based on this causality, the next objective is to demonstrate that less developed countries, specifically Bangladesh is in the best position to increase investment in the Internet to experience economic growth. Finally, the implications of Internet penetration on various economic sectors in Bangladesh are discussed. Panel data for 244 countries from the World Bank from 1990-2011 is used to carry out the experiment for the first goal. The paper is broken down as follows. The first section introduces three studies that have attempted to quantify Internet’s impact. The neoclassical and endogenous growth models are introduced as well as the method and model used in this paper. Furthermore, an econometric discussion is provided as well as a discussion of the results. Finally, we discuss the implications of the Internet on Bangladesh and policies that they have enacted to utilize the Internet in key sectors