Savings and Investment Estimates in Bangladesh: Some Issues and Perspectives in the Context of an Open Economy.

The paper examines the conceptual issues surrounding the estimation of savings and investment in  Bangladesh and explains why there exist perceptible differences between the estimates of savings and investment, given the relevant theory and the adopted practice. The study also draws some implications of the divergences and provides recommendations for improving the situation. In addition, the underestimation seems to be gaining more severity in recent years which calls for improvements and adjustments in the methodology of measuring savings and investment in the country. As Bangladesh economy becomes more open, the share of income produced outside its boundaries would rise. This would increase the difference between gross domestic savings and gross national savings; and gross national savings would emerge as the more relevant concept of savings based on disposable income. click here  to download the Paper