Does Consumption Drive Growth or Does Growth Drive Consumption? Multivariate Time-Series Evidence from Bangladesh (1961–2024)
Using 63 years of multivariate time-series data from Bangladesh (1961–2024), this study confirms a unidirectional causal relationship where economic growth drives household consumption, while rejecting the consumption-led growth hypothesis and identifying GDP growth, remittances, and trade openness as key short-run determinants.