Growth, Income Inequality and Poverty Trends in Bangladesh - UNDP

Growth, Income Inequality and Poverty Trends in Bangladesh: 

Implications for Development Strategy 1 

Uttam Deb, Zobdul Hoque, Nafisa Khaled and Subir Kanti Bairagi 2 

I. INTRODUCTION 

Regional inequality is a growing concern in Bangladesh. Bangladesh during the pre- 

independence period experienced serious regional inequality. Policy actions to address regional 

inequality require information about the nature, extent and trends in regional inequality. An 

attempt is made in this paper to analyze regional inequality in Bangladesh. Regional inequality 

may be analyzed on issues related to growth, income inequality and poverty. Therefore, the 

present study has analyzed regional inequalities for 64 districts of Bangladesh and focused on the 

following issues: 

(a) Analyze the nature, extent and trends in growth, poverty and income inequality in 

Bangladesh during 1995/96-2005/06; 

(b) Document and examine relationship between economic growth, income inequality and 

poverty in Bangladesh; 

(c) Provide some policy suggestions to foster growth, reduce income inequality and poverty in 

Bangladesh. 

The paper is divided into five sections. Following introduction, Section II discusses growth 

performance at the national and districts level and determinants of growth. Section III describes 

trends in income distribution and income inequality in Bangladesh. It also focuses on the factors 

responsible for variation in per capita income among districts and income inequality. Regional 

level poverty situation (income and human poverty) is discussed in Section IV. Determinants of 

poverty are also discussed here. Section V puts forward some issues for discussion. 

1 Paper presented at the Dialogue on “Addressing Regional Inequalities: Policy Options and Strategies” held on 28 

February 2008 at the CIRDAP Auditorium; organized by the Centre for Policy Dialogue (CPD). 

2 Authors are respectively, Head, Research Division, Centre for Policy Dialogue (CPD); former Deputy Director 

General, Bangladesh Bureau of Statistics (BBS); and Research Associates, CPD. Authors are grateful to Molla 

Mursaleen Shiraj for research assistance. 

CPD: Growth, Income Inequality and Poverty 

1

II. GROWTH PERFORMANCE: SECTORAL AND DISTRICT LEVEL 

II.1 Trends in GDP 

Volume of GDP has increased from 17.585 billion in 1981/82 to 39.068 in 1995/96 and 

increased further to 59.748 billion in 2005/06. On the other hand, between 1981/82 and 2005/06, 

volume of agriculture GDP has increased from 5.482 billion to 11.718 billion; industry GDP 

increased from 3.707 billion to 16.674 and service GDP from 8.396 to 31.356 billion. In other 

words, between 1981/82 and 2005/06, GDP increased by 2.4 times, agricultural GDP increased 

by 1.1 times, industry GDP increased by 3.5 times and service GDP increased by 2.7 times. 

During this period different sub-sectors of agriculture also registered high increased. Crop GDP 

increased by 55%, livestock GDP increased by 2.7 times and fisheries GDP increased by about 6 

times. During the last years (between 1995/96 and 2005/06), GDP increased by 53%, agriculture 

GDP by 17%, industry GDP by 72% and service GDP by 62% while increase in crop sub-sector 

was 17%, livestock (10%), fisheries (16%) and forestry (27%). 

Table 1: Trends in GDP at Current Price (Million US$) in Bangladesh, by sector: 1981/82 to 

2005/06 

Sector 1981/82 1991/92 1995/96 1999/00 2005/06 % change in 

2005/06, 

compared to 


1981/82 

% change in 

2005/06, 

compared 

to 1995/96 

Agriculture 5,482 8,896 10,030 11,597 11,718 114 17 

Crop 4439 5985 5,871 6,639 6,881 55 17 

Livestock 394 1119 1,312 1,363 1,445 267 10 

Fisheries 350 1155 2,093 2,717 2,434 595 16 

Forestry 299 638 755 878 958 220 27 

Industry 3,707 6,805 9,717 11,492 16,674 350 72 

Service 8,396 14,574 19,321 22,358 31,356 273 62 

Total GDP 17,585 30,275 39,068 45,396 59,748 240 53 

Source: Own estimate, based on BBS data. 

An analysis of trends in GDP by sectors at the district level was carried out. In 2005/06, 

compared to 1995/96, the districts experienced five types of changes in their respective GDP, 

agricultural GDP, industrial GDP, and service sector GDP. These are: (i) High Increase (More 

than 50%), (ii) Medium Increase (20% to 50%), (iii) Low Increase (0%to 20%), (iv) Decrease 

(

Trends and changes in total GDP: Trends and changes in total GDP at the district level are 

reported in Table 2. In 2005/06, compared to 1995/96, high increase in GDP was observed in 33 

districts (Kurigram, Magura, Nilphamari, Brahamanbaria, Sherpur, Noakhali, Rangpur, 

Nawabganj, Jhenaidaha, Jessore, Tangail, Khagrachhari, Khulna, Jamalpur, Sunamganj, 

Panchagarh, Dinajpur, Narsingdi, Natore, Sylhet, Bogra, Rajshahi, Satkhira, Bagerhat, 

Chittagong, Narayanganj, Naogaon, Pabna, Gazipur, Dhaka, Joypurhat, Sirajganj, Kishoreganj), 

medium increase in GDP was observed in 28 districts (Lakshmipur, Mymensingh, Thakurgaon, 

Gopalganj, Narail, Barguna, Patuakhali, Bhola, Pirojpur, Chandpur, Chuadanga, Kushtia, 

Madaripur, Maulvibazar, Rajbari, Jhalokati, Shariatpur, Comilla, Munshiganj, Faridpur, 

Meherpur, Cox's Bazar, Manikganj, Gaibandha, Lalmonirhat, Feni, Barisal, Haiganj), two 

districts (Bandarban, Netrakona) had low increase and one district (Rangamati) had high 

decrease in GDP. 

Trends and changes in agricultural GDP: Trends and changes in agricultural GDP at the 

district level are reported in Table 3. In 2005/06, compared to 1995/96, high increase in 

agricultural GDP was observed in two districts (Joypurhat, Kishoreganj), medium increase in 

agricultural GDP was observed in 25 districts (Kurigram, Habiganj, Nilphamari, Jamalpur, 

Magura, Jhenaidaha, Thakurgaon, Narayanganj, Natore, Khagrachhari, Brahamanbaria, 

Nawabganj, Gazipur, Panchagarh, Rajshahi, Dhaka, Bogra, Dinajpur, Pabna, Sirajganj, 

Sunamganj, Satkhira, Bagerhat, Naogaon, Khulna), low increase in 25 districts (Chandpur, 

Faridpur, Madaripur, Pirojpur, Shariatpur, Jhalokati, Narail, Bhola, Barguna, Cox's Bazar, 

Patuakhali, Sylhet, Gaibandha, Comilla, Manikganj, Narsingdi, Feni, Lalmonirhat, Rangpur, 

Barisal, Chittagong, Tangail, Sherpur, Jessore, Noakhali). Agricultural GDP decreased in seven 

districts (Lakshmipur, Munshiganj, Rajbari, Meherpur, Chuadanga, Gopalganj, Maulvibazar) and 

five districts (Bandarban, Rangamati, Netrakona, Mymensingh, Kushtia) had high decrease in 

agriculture GDP. 

Trends and changes in industrial GDP: Trends and changes in industrial GDP at the district 

level are reported in Table 4. In 2005/06, compared to 1995/96, high increase in industrial GDP 

was observed in all districts except two districts (Comilla and Rangamati). Comilla district had 

medium increase while Rangamati experienced high decrease in industrial GDP. 


3

Trends and changes in service sector GDP: Trends and changes in service sector GDP at the 

district level are reported in Table 5. In 2005/06, compared to 1995/96, high increase in service 

sector GDP was observed in all districts except six districts (Thakurgaon, Rangamati, 

Bandarban, Gopalganj, Lakshmipur, Netrakona) which had medium increase in service sector 

GDP. 

Trends and changes in GDP of the crop and horticulture sub-sector: Trends and changes in 

GDP of the crop and horticulture sub-sector at the district level are reported in Table 6. In 

2005/06, compared to 1995/96, High Increase in crop GDP was observed in four districts 

(Khulna, Bagerhat, Satkhira, Kishoreganj), medium increase in crop GDP was observed in 22 

districts (Lalmonirhat, Magura, Gaibandha, Khagrachhari, Jhenaidaha, Nilphamari, Jamalpur, 

Sylhet, Sherpur, Thakurgaon, Habiganj, Dinajpur, Sunamganj, Panchagarh, Nawabganj, Natore, 

Pabna, Sirajganj, Rajshahi, Bogra, Naogaon, Joypurhat), 14 districts (Manikganj, Patuakhali, 

Madaripur, Barisal, Pirojpur, Feni, Bhola, Chandpur, Brahamanbaria, Comilla, Kurigram, 

Tangail, Jessore, Rangpur) had low increase in crop GDP. Crop GDP decreased in 17 districts 

(Narayanganj, Gazipur, Maulvibazar, Gopalganj, Rajbari, Narsingdi, Jhalokati, Shariatpur, 

Lakshmipur, Barguna, Munshiganj, Cox's Bazar, Faridpur, Noakhali, Dhaka, Narail, Chittagong) 

and seven districts (Rangamati, Bandarban, Kushtia, Netrakona, Meherpur, Chuadanga, 

Mymensingh) registered high decrease in crop GDP. 

Trends and changes in GDP of the livestock sub-sector: Trends and changes in GDP of the 

livestock sub-sector at the district level are reported in Table 7. In 2005/06, compared to 

1995/96, high increase in livestock GDP was observed in five districts (Rajshahi, Bhola, 

Joypurhat, Gazipur, Dhaka), medium increase in livestock GDP was observed in 11 districts 

(Nawabganj, Naogaon, Comilla, Jamalpur, Noakhali, Natore, Chittagong, Narsingdi, Chuadanga, 

Khagrachhari, Meherpur) and 26 districts (Mymensingh, Tangail, Rajbari, Kurigram, Pabna, 

Dinajpur, Kishoreganj, Bagerhat, Manikganj, Narayanganj, Bogra, Cox's Bazar, Sirajganj, 

Rangamati, Barisal, Shariatpur, Kushtia, Patuakhali, Barguna, Jhenaidaha, Chandpur, Feni, 

Pirojpur, Jhalokati, Lakshmipur, Khulna) had low increase in livestock GDP. Livestock GDP 

decreased in 18 districts (Sylhet, Lalmonirhat, Nilphamari, Netrakona, Panchagarh, Satkhira, 


4

Brahamanbaria, Maulvibazar, Thakurgaon, Madaripur, Magura, Bandarban, Gaibandha, Narail, 

Rangpur, Sherpur, Jessore, Gopalganj) and four districts (Faridpur, Sunamganj, Munshiganj, 

Habiganj) had high decrease in GDP. 

Trends and changes in GDP of the fisheries sub-sector: Trends and changes in GDP of the 

fisheries sub-sector at the district level are reported in Table 8. In 2005/06, compared to 1995/96, 

high increase in fisheries GDP was observed in 22 districts (Pabna, Sirajganj, Noakhali, Narail, 

Dinajpur, Jhenaidaha, Naogaon, Kurigram, Tangail, Thakurgaon, Panchagarh, Magura, 

Narsingdi, Gazipur, Joypurhat, Brahamanbaria, Sunamganj, Narayanganj, Manikganj, 

Nilphamari, Chuadanga, Meherpur), medium increase in fisheries GDP was observed in 15 

districts (Bagerhat, Habiganj, Barguna, Shariatpur, Maulvibazar, Khulna, Lalmonirhat, Feni, 

Rangpur, Chittagong, Kushtia, Dhaka, Barisal, Jessore, Faridpur), 10 districts (Madaripur, 

Natore, Rajshahi, Comilla, Bogra, Satkhira, Jhalokati, Cox's Bazar, Patuakhali, Nawabganj) had 

low increase in fisheries GDP. Fisheries GDP decreased in 10 districts (Chandpur, Sylhet, 

Sherpur, Rajbari, Rangamati, Munshiganj, Pirojpur, Gopalganj, Bhola, Jamalpur) and six 

districts (Mymensingh, Lakshmipur, Netrakona, Bandarban, Kishoreganj, Gaibandha) had high 

decrease in fisheries GDP. 

Trends and changes in GDP of the forestry sub-sector: Trends and changes in GDP of the 

forestry sub-sector at the district level are reported in Table 9. All of the 64 districts of 

Bangladesh experienced medium increase in forestry GDP in 2005/06, compared to that of 

1995/96. 


5

Table 2: Trends in GDP at Current Market Price (in Million US$) in Bangladesh, by district: 

1995/96 to 2005/06 

Districts 1995/96 1999/00 2005/06 % change 

in 

2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 

Bagerhat 466 557 742 59.4 Madaripur 260 308 368 41.2 

Bandarban 93 104 105 13.2 Magura 226 265 342 50.9 

Barguna 263 304 366 38.9 Manikganj 342 401 503 47.0 

Barisal 628 732 939 49.6 Maulvibazar 400 465 565 41.2 

Bhola 477 552 665 39.4 Meherpur 163 192 236 44.5 

Bogra 769 918 1223 59.1 Munshiganj 325 372 465 43.3 

Brahamanbaria 674 750 1020 51.4 Mymensingh 1216 1406 1499 23.3 

Chandpur 515 609 722 40.4 Naogaon 639 755 1025 60.5 

Chittagong 3055 3543 4871 59.4 Narail 205 236 280 36.3 

Chuadanga 268 314 377 40.7 Narayanganj 1097 1246 1751 59.6 

Comilla 1144 1265 1635 42.9 Narsingdi 596 692 938 57.4 

Cox's Bazar 564 660 820 45.3 Natore 448 527 708 58.0 

Dhaka 5714 6742 9497 66.2 Nawabganj 315 373 484 53.8 

Dinajpur 720 847 1129 56.8 Netrakona 538 615 629 16.9 

Faridpur 415 484 598 44.2 Nilphamari 359 420 543 51.3 

Feni 287 328 429 49.3 Noakhali 613 728 934 52.4 

Gaibandha 490 572 726 48.3 Pabna 684 802 1100 60.7 

Gazipur 1132 1309 1850 63.4 Panchagarh 202 239 315 56.1 

Gopalganj 284 325 385 35.7 Patuakhali 462 524 642 39.0 

Habiganj 484 540 724 49.8 Pirojpur 291 331 409 40.2 

Jamalpur 509 603 792 55.4 Rajbari 232 274 328 41.5 

Jessore 782 908 1206 54.2 Rajshahi 661 798 1052 59.1 

Jhalokati 180 198 255 41.8 Rangamati 263 196 187 -28.9 

Jhenaidaha 444 513 684 54.1 Rangpur 651 763 997 53.2 

Joypurhat 241 287 405 67.5 Satkhira 497 588 792 59.3 

Khagrachhari 105 124 163 55.0 Shariatpur 239 282 339 42.0 

Khulna 964 1124 1495 55.1 Sherpur 304 364 462 51.9 

Kishoreganj 642 737 1183 84.4 Sirajganj 667 769 1152 72.7 

Kurigram 417 516 627 50.4 Sunamganj 463 537 719 55.4 

Kushtia 495 573 697 40.9 Sylhet 679 826 1077 58.6 

Lakshmipur 424 478 516 21.8 Tangail 792 926 1223 54.4 

Lalmonirhat 248 302 368 48.5 Thakurgaon 348 410 471 35.2 


BANGLADESH 39068 45447 59748 52.9 

6

Table 3: Trends in Agricultural GDP in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 


Bandarban 36 37 19 -48.2 Magura 100 114 125 24.4 


Barisal 181 213 213 17.9 Maulvibazar 146 167 142 -2.2 

Bhola 210 239 225 7.3 Meherpur 59 67 56 -3.9 

Bogra 267 313 353 32.2 Munshiganj 74 87 70 -5.8 

Brahamanbaria 164 187 214 30.5 Mymensingh 491 551 360 -26.8 



Chuadanga 88 102 85 -3.3 Narayanganj 48 58 62 28.7 



Dhaka 62 79 82 32 Nawabganj 111 128 144 30.5 

Dinajpur 269 310 356 32.2 Netrakona 244 270 174 -28.6 


Feni 85 99 99 15.9 Noakhali 217 261 261 20.0 



Gopalganj 96 111 94 -2.3 Patuakhali 216 236 237 9.7 


Jamalpur 162 190 201 23.9 Rajbari 81 97 78 -4.2 









Kushtia 146 163 115 -21.5 Sylhet 198 232 218 9.9 

Lakshmipur 187 201 150 -19.5 Tangail 246 287 294 19.3 


BANGLADESH 9,355 10,855 11,014 17.7 


7

Table 4: Trends in Industrial GDP in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 









Chittagong 1,061 1,274 1,869 76.1 Narail 24 30 42 73.2 




Dhaka 2,348 2,803 4,103 74.7 Nawabganj 44 54 76 74.1 



Feni 61 65 95 56.2 Noakhali 98 120 175 77.4 

















BANGLADESH 9,717 11,492 16,674 71.6 


8

Table 5: Trends in GDP of the Service Sector in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 









Chittagong 1,637 1,864 2,581 57.6 Narail 88 101 139 59.1 




Dhaka 3,304 3,860 5,311 60.8 Nawabganj 160 191 264 64.4 



Feni 141 164 235 66.5 Noakhali 297 346 499 67.8 







Jhalokati 93 106 147 57.4 Rangamati 83 96 116 39.6 










BANGLADESH 19,321 22,358 31,356 62.3 


9

Table 6: Trends in Crop GDP in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 



Barguna 64 61 61 -4.2 Manikganj 79 92 79 0.9 


Bhola 93 93 98 6.0 Meherpur 45 51 33 -25.6 


Brahamanbaria 99 102 110 11 Mymensingh 218 262 174 -20.4 


Chittagong 196 209 195 -0.3 Narail 72 79 72 -0.4 

Chuadanga 66 76 50 -24.4 Narayanganj 28 33 26 -9.4 

Comilla 212 224 237 11.7 Narsingdi 70 81 66 -5.9 

Cox's Bazar 78 84 75 -3.5 Natore 100 119 136 36.6 

Dhaka 34 40 33 -1.9 Nawabganj 71 85 96 35.3 

Dinajpur 165 185 218 31.9 Netrakona 135 150 89 -34 

Faridpur 79 92 77 -3.1 Nilphamari 94 110 117 24.2 

Feni 45 50 46 4.0 Noakhali 122 137 118 -2.9 


Gazipur 60 69 55 -8.9 Panchagarh 55 63 74 34.7 



Jamalpur 108 130 137 26.5 Rajbari 46 58 44 -6.2 


Jhalokati 32 32 31 -4.9 Rangamati 47 50 14 -70.8 



Khagrachhari 17 20 22 24.0 Shariatpur 55 65 52 -4.8 




Kushtia 108 118 67 -38.0 Sylhet 103 123 131 28.1 



BANGLADESH 5,871 6,639 6,881 17.2 


10

Table 7: Trends in Livestock GDP in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 

Bagerhat 16 16 18 7.5 Madaripur 12 13 11 -8.9 

Bandarban 5 5 4 -8.7 Magura 11 11 10 -8.9 





Brahamanbaria 23 25 19 -16.1 Mymensingh 55 56 55 0.3 


Chittagong 38 39 54 41.6 Narail 9 9 8 -4.2 






Faridpur 25 26 18 -29.0 Nilphamari 20 21 17 -17.3 

Feni 12 13 14 14.0 Noakhali 24 26 31 28.6 

Gaibandha 29 30 27 -4.3 Pabna 23 24 24 4.9 

Gazipur 18 19 35 89.6 Panchagarh 13 13 11 -16.3 


Habiganj 19 20 15 -20.2 Pirojpur 15 16 17 15.1 


Jessore 36 39 36 -1.4 Rajshahi 20 21 30 52.0 


Jhenaidaha 23 23 26 13.9 Rangpur 34 35 33 -2.5 

Joypurhat 15 16 25 65.0 Satkhira 25 26 21 -16.3 


Khulna 18 18 21 19.3 Sherpur 14 15 14 -2.3 


Kurigram 24 25 25 3.7 Sunamganj 24 25 17 -26.3 

Kushtia 18 19 21 12.4 Sylhet 25 26 20 -19.4 


Lalmonirhat 15 16 13 -18.8 Thakurgaon 21 22 18 -13.4 

BANGLADESH 1,312 1,363 1,445 10.1 


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Table 8: Trends in Fisheries GDP in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 





Bhola 88 113 85 -3.6 Meherpur 2 2 6 261.7 


Brahamanbaria 29 45 68 136.2 Mymensingh 186 195 90 -51.6 

Chandpur 69 100 56 -19.2 Naogaon 38 45 65 72.2 








Feni 23 30 31 37.7 Noakhali 58 82 94 62.8 

Gaibandha 25 25 20 -20.7 Pabna 24 36 37 55.3 



Habiganj 19 23 23 22 Pirojpur 27 35 25 -7.5 

Jamalpur 16 19 16 -1.5 Rajbari 17 21 15 -15.2 





Khagrachhari 0 0 0 n.a. Shariatpur 13 17 16 24.3 

Khulna 92 125 124 33.6 Sherpur 12 17 10 -16.5 

Kishoreganj 64 78 50 -21.3 Sirajganj 18 18 28 55.5 


Kushtia 10 14 14 44.4 Sylhet 54 65 45 -16.7 




BANGLADESH 1920 2482 2237 16.5 

12

Table 9: Trends in Forestry GDP in Bangladesh, by district: 1995/96 to 2005/06 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 
















Feni 6 7 7 27.0 Noakhali 13 16 17 27.0 


















BANGLADESH 755 878 958 27.0 

13

II.2 GDP Growth Performance 

Annual compound rates of growth in total GDP and different sectors of the economy 

(agriculture, industry and service) were estimated at the national and district level. Annual 

compound rates of growth in different sub-sectors of agriculture (crop, livestock, fisheries and 

forestry) were also calculated. Growth estimates were done for three periods: late 1990s 

(1995/96-1999/00), early 2000s (2001/02-2005/06) and overall period (1995/96-2005/06). 

Depending upon the rate of growth, study districts may be classified into four categories: high 

growth (>5% annual compounded rate of growth), moderate growth (2-5% annual compound 

rate of growth), slow growth (up to 2% annual compound rate of growth) and negative growth. 

Performance of the Bangladesh economy in late 1990s and early 2000s are reported in Table 10. 

GDP growth in the 1990s (3.85% per annum) was less than the long term (1981/82-2005/06) 

growth (5.12%) and medium term (1995/96-2005/06) growth (4.15%). In early 1990s, 

agriculture sector performed better that that of long-term (3.10%), medium term (1.06%). On the 

other hand, agriculture in the early 2000s performed better than medium term but poorer than 

long-term growth. Growth performance of the industrial sector in late 1990s was poorer than 

long-term and medium term growth performance but in early 2000s growth in industrial sector 

was higher than the long-term and medium term growth. Performance of the service sector was 

similar to that of industrial sector. 

Table 10: Growth performance of the economy of Bangladesh in late 1990s and early 2000s, 

compared to medium and long term trends 

Sector 1980s 

(1981/82- 

1989/90) 

1990s 

(1990/91- 

1999/00) 


Late 1990s 

(1995/96- 

1999/00) 

Early 2000s 

(2001/02- 

2005/06) 

Long-term 

growth 

(1981/82- 

2005/06) 

(% per annum) 

Medium term 

(1995/96- 

2005/06) 

Agriculture 5.36 3.70 3.88 2.09 3.10 1.06 

Crop 1.83 1.46 3.48 2.58 1.89 1.00 

Livestock 2.09 2.50 0.82 3.02 6.43 0.53 

Fisheries 2.30 7.77 6.62 0.12 10.19 1.02 

Forestry 2.36 3.57 3.97 2.60 3.56 2.45 

Industry 5.71 6.86 4.19 7.51 6.39 5.16 

Service 5.92 5.33 3.66 7.18 5.59 5.02 

Total GDP 5.70 5.24 3.85 6.17 5.12 4.15 


14

Growth in GDP: Bangladesh experienced moderate growth (3.85% per annum) in GDP in the 

late 1990s, high growth (6.17% per annum) in the early 2000s and moderate growth (4.15% per 

annum) in the overall period (Table 11). During the late 1990s, two districts (Lalmonirhat, 

Kurigram) had high growth, four districts (Jhalokati, Comilla, Brahamanbaria, Habiganj) 

experienced slow growth, one district (Rangamati) had negative growth while all other districts 

(57 districts) had moderate growth. In the early 2000s, 15 districts (Barguna, Patuakhali, 

Mymensingh, Bhola, Kishoreganj, Netrakona, Noakhali, Chandpur, Lakshmipur, Pirojpur, 

Manikganj, Panchagarh, Cox's Bazar, Jhalokati, Thakurgaon) experienced moderate growth in 

GDP and all other districts had high growth (Comilla, Barisal, Gaibandha, Habiganj, Gopalganj, 

Dinajpur, Feni, Maulvibazar, Lalmonirhat, Nilphamari, Shariatpur, Sylhet, Sunamganj, 

Joypurhat, Faridpur, Kurigram, Madaripur, Munshiganj, Sherpur, Bandarban, Brahamanbaria, 

Meherpur, Bogra, Tangail, Narail, Magura, Rangpur, Jamalpur, Rangamati, Rajbari, Chuadanga, 

Nawabganj, Naogaon, Kushtia, Bagerhat, Natore, Jhenaidaha, Pabna, Narsingdi, Sirajganj, 

Jessore, Rajshahi, Satkhira, Khulna, Chittagong, Gazipur, Narayanganj, Dhaka, Khagrachhari) in 

GDP. During the overall period (1995/96-2005/06), four districts (Joypurhat, Sirajganj, 

Kishoreganj, Khagrachhari) had high growth, seven districts (Bandarban, Netrakona, 

Lakshmipur, Mymensingh, Narail, Thakurgaon, Gopalganj) experienced slow growth, one 

district (Rangamati) had negative growth while all other districts (52 districts) had moderate 

growth. 

Growth in Agricultural GDP: Bangladesh experienced moderate growth (3.88% per annum) 

in GDP in the late 1990s, slow growth (2.09% per annum) in the early 2000s and slow growth 

(1.06% per annum) in the overall period in its agricultural GDP (Table 12). During the late 

1990s, nine districts (Pabna, Narayanganj, Bagerhat, Khulna, Sherpur, Chandpur, Lalmonirhat, 

Dhaka, Kurigram) had high growth, 47 districts (Khagrachhari, Natore, Jhenaidaha, Kushtia, 

Netrakona, Narail, Rangpur, Barguna, Gaibandha, Chittagong, Maulvibazar, Kishoreganj, 

Jessore, Brahamanbaria, Habiganj, Meherpur, Magura, Mymensingh, Nilphamari, Dinajpur, 

Madaripur, Chuadanga, Thakurgaon, Naogaon, Barisal, Sirajganj, Gopalganj, Tangail, Feni, 

Panchagarh, Sylhet, Nawabganj, Jamalpur, Bogra, Joypurhat, Satkhira, Faridpur, Sunamganj, 

Rajshahi, Narsingdi, Manikganj, Gazipur, Shariatpur, Cox's Bazar, Noakhali, Munshiganj, 

Rajbari) had moderate growth, seven districts (Bandarban, Lakshmipur, Rangamati, Patuakhali, 


15

Comilla, Bhola, Pirojpur) experienced slow growth, and one district (Jhalokati) had negative 

growth. 

In the early 2000s, two districts (Satkhira and Khagrachhari) had high growth, 13 districts 

(Bogra, Sherpur, Jamalpur, Rajshahi, Nawabganj, Magura, Narail, Natore, Jessore, Jhenaidaha, 

Khulna, Naogaon, Bagerhat) experienced moderate growth in GDP, 40 districts had slow growth 

(Dhaka, Munshiganj , Bhola, Manikganj, Jhalokati, Lakshmipur, Feni, Barisal, Cox's Bazar, 

Pirojpur, Chittagong, Comilla, Maulvibazar, Habiganj, Kishoreganj, Narsingdi, Kushtia, 

Faridpur, Panchagarh, Gazipur, Thakurgaon, Gaibandha, Dinajpur, Rangamati, Chuadanga, 

Meherpur, Brahamanbaria, Lalmonirhat, Gopalganj, Shariatpur, Nilphamari, Kurigram, Rangpur, 

Pabna, Tangail, Sirajganj, Madaripur, Sunamganj, Joypurhat, Rajbari) and nine districts 

(Mymensingh, Barguna, Bandarban, Narayanganj, Patuakhali, Sylhet, Noakhali, Chandpur, 

Netrakona) had negative growth in agricultural GDP. 

During the overall period (1995/96-2005/06), two districts (Kishoreganj, Khagrachhari) had high 

growth, three districts (Sirajganj, Naogaon, Joypurhat) experienced moderate growth, 39 

districts (Lalmonirhat, Cox's Bazar, Sylhet, Kurigram, Patuakhali, Gaibandha, Sherpur, Barisal, 

Jhalokati, Jessore, Manikganj, Feni, Narsingdi, Rangpur, Satkhira, Comilla, Magura, Tangail, 

Habiganj, Jamalpur, Nilphamari, Noakhali, Bagerhat, Chittagong, Jhenaidaha, Thakurgaon, 

Khulna, Nawabganj, Narayanganj, Dhaka, Natore, Pabna, Gazipur, Panchagarh, Sunamganj, 

Rajshahi, Brahamanbaria, Dinajpur, Bogra) experienced slow growth, 15 districts (Lakshmipur, 

Rajbari, Maulvibazar, Chuadanga, Meherpur, Gopalganj, Madaripur, Munshiganj, Chandpur, 

Faridpur, Narail, Shariatpur, Pirojpur, Barguna, Bhola) had negative growth and five districts 

(Rangamati, Bandarban, Netrakona, Kushtia, Mymensingh) had extremely negative growth in 

agricultural GDP. 

Growth in Service Sector GDP: Bangladesh experienced moderate growth (3.66% per annum) 

in service GDP in the late 1990s, high growth (7.18% per annum) in the early 2000s and high 

growth (5.02% per annum) in the overall period in its service sector GDP (Table 15). During the 

late 1990s, six districts (Gopalganj, Munshiganj, Sunamganj, Manikganj, Madaripur, and 

Narayanganj) had slow growth and all other districts (58 districts) had moderate growth in its 

service sector GDP. In the early 2000s, all of the 64 districts experienced high growth in service 


16

sector GDP. During the overall period (1995/96-2005/06), 43 districts (Shariatpur, Faridpur, 

Sylhet, Cox's Bazar, Kushtia, Rajbari, Bhola, Rajshahi, Narsingdi, Patuakhali, Maulvibazar, 

Kurigram, Nawabganj, Comilla, Brahamanbaria, Pabna, Barguna, Habiganj, Lalmonirhat, Feni, 

Jessore, Sunamganj, Rangpur, Nilphamari, Satkhira, Jamalpur, Bagerhat, Sherpur, Meherpur, 

Jhenaidaha, Gaibandha, Magura, Noakhali, Tangail, Dinajpur, Bogra, Natore, Panchagarh, 

Naogaon, Kishoreganj, Khagrachhari, Joypurhat, Sirajganj) had high growth, 20 districts 

(Rangamati, Bandarban, Khulna, Narayanganj, Lakshmipur, Gopalganj, Netrakona, Dhaka, 

Madaripur, Munshiganj, Chittagong, Mymensingh, Chuadanga, Gazipur, Narail, Pirojpur, 

Chandpur, Barisal, Jhalokati, Manikganj) experienced moderate growth, and one district 

(Thakurgaon) experienced slow growth. 

Growth in Industrial GDP: Bangladesh experienced moderate growth (4.19% per annum) in 

industrial GDP in the late 1990s, high growth (7.51% per annum) in the early 2000s and high 

growth (5.16% per annum) in the overall period in its industrial GDP (Table 16). During the late 

1990s, 25 districts (Kishoreganj, Meherpur, Shariatpur, Joypurhat, Chandpur, Sherpur, Jamalpur, 

Netrakona, Madaripur, Dinajpur, Natore, Nawabganj, Panchagarh, Mymensingh, Bogra, 

Khagrachhari, Nilphamari, Kurigram, Rangpur, Thakurgaon, Gaibandha, Lakshmipur, 

Lalmonirhat, Naogaon, Sylhet) had high growth, 29 districts (Narayanganj, Sirajganj, Narsingdi, 

Gazipur, Pabna, Khulna, Kushtia, Dhaka, Munshiganj, Bandarban, Manikganj, Tangail, 

Bagerhat, Satkhira, Patuakhali, Barguna, Chittagong, Jhenaidaha, Bhola, Rajbari, Barisal, 

Jessore, Sunamganj, Chuadanga, Jhalokati, Pirojpur, Rajshahi, Magura, Narail, Noakhali, 

Maulvibazar, Gopalganj, Faridpur) experienced moderate growth, and five districts (Comilla, 

Brahamanbaria, Habiganj, Feni, Cox's Bazar) experienced slow growth and one district 

(Rangamati) experienced extremely negative growth in industrial GDP. In the early 2000s, all of 

the 64 districts experienced high growth in industrial GDP. During the overall period (1995/96- 

2005/06), 7 districts (Brahamanbaria, Comilla, Dhaka, Feni, Gazipur, Narayanganj, Narsingdi) 

experienced moderate growth, and one district (Rangamati) experienced negative growth and all 

other districts experienced high growth. 

Growth in Crop GDP: Bangladesh experienced moderate growth (3.48% per annum) in crop 

GDP in the late 1990s, slow growth (2.58% per annum) in the early 2000s and slow growth 

(1.00% per annum) in the overall period in its crop GDP (Table 17). During the late 1990s, seven 


17

districts (Nawabganj, Jamalpur, Kurigram, Sirajganj, Rajshahi, Rajbari and Sherpur) had high 

growth, 47 districts (Jessore, Netrakona, Jhenaidaha, Feni, Gopalganj, Dinajpur, Habiganj, 

Noakhali, Khagrachhari, Maulvibazar, Meherpur, Rangpur, Chuadanga, Madaripur, Narsingdi, 

Thakurgaon, Bogra, Gazipur, Khulna, Narayanganj, Sunamganj, Panchagarh, Bagerhat, 

Faridpur, Nilphamari, Manikganj, Tangail, Pabna, Joypurhat, Munshiganj, Lalmonirhat, 

Naogaon, Sylhet, Shariatpur, Gaibandha, Natore, Dhaka, Mymensingh) had moderate growth, 15 

districts (Barisal, Bhola, Pirojpur, Brahamanbaria, Chandpur, Bandarban, Rangamati, Comilla, 

Chittagong, Cox's Bazar, Lakshmipur, Kushtia, Kishoreganj, Magura, Narail, Satkhira) 

experienced slow growth, and three districts (Barguna, Jhalokati, Patuakhali) had negative 

growth. 

In the early 2000s, eight districts (Bagerhat, Jessore, Jhenaidaha, Khagrachhari, Khulna, Magura, 

Narail, Satkhira) had high growth, 17 districts (Bogra, Faridpur, Gopalganj, Jamalpur, 

Joypurhat, Madaripur, Naogaon, Natore, Nawabganj, Pabna, Rajbari, Rajshahi, Rangamati, 

Shariatpur, Sherpur, Sirajganj, Tangail) had moderate growth, seven districts (Barguna, Feni, 

Lakshmipur, Mymensingh, Netrakona, Noakhali, Patuakhali) had negative growth and one 

district (Bandarban) showed extremely negative growth. On the other hand 31 districts (Barisal, 

Bhola, Brahamanbaria, Chandpur, Chittagong, Chuadanga, Comilla, Cox's Bazar, Dhaka, 

Dinajpur, Gaibandha, Gazipur, Habiganj, Jhalokati, Kishoreganj, Kurigram, Kushtia, 

Lalmonirhat, Manikganj, Maulvibazar, Meherpur, Munshiganj, Narayanganj, Narsingdi, 

Nilphamari, Panchagarh, Pirojpur, Rangpur, Sunamganj, Sylhet, Thakurgaon) experienced slow 

growth in crop GDP. 

During the overall period (1995/96-2005/06), two districts (Kishoreganj, Khagrachhari) had high 

growth, two districts (Bogra, Joypurhat) experienced moderate growth, 32 districts (Bagerhat, 

Brahamanbaria, Chandpur, Chittagong, Comilla, Dinajpur, Feni, Gaibandha, Habiganj, Jamalpur, 

Jessore, Jhenaidaha, Khulna, Kurigram, Lalmonirhat, Magura, Naogaon, Natore, Nawabganj, 

Nilphamari, Pabna, Panchagarh, Rajshahi, Rangpur, Satkhira, Sherpur, Sirajganj, Sunamganj, 

Sylhet, Tangail, Thakurgaon) experienced slow growth, 21 districts (Barguna, Barisal, Bhola, 

Cox's Bazar, Dhaka, Faridpur, Gazipur, Gopalganj, Jhalokati, Lakshmipur, Madaripur, 

Manikganj, Munshiganj, Mymensingh, Narail, Narayanganj, Narsingdi, Noakhali, Patuakhali, 


18

Pirojpur, Rajbari, Shariatpur) had negative growth and seven districts (Bandarban, Chuadanga, 

Kushtia, Maulvibazar, Meherpur, Netrakona, Rangamati) had extremely negative growth in crop 

GDP. 

Growth in Livestock GDP: Bangladesh experienced slow growth (0.82% per annum) in 

livestock GDP in the late 1990s, moderate growth (3.02% per annum) in the early 2000s and 

slow growth (0.53% per annum) in the overall period in its livestock GDP (Table 18). During the 

late 1990s, 62 districts had show slow growth and two districts (Bagerhat, Nawabganj) had 

negative growth in livestock GDP. In the early 2000s, all districts had moderate growth in 

livestock GDP. 

During the overall period (1995/96-2005/06), two districts (Gazipur, Joypurhat) had high growth, 

seven districts (Bhola, Chittagong, Chuadanga, Khagrachhari, Meherpur, Narsingdi, Rajshahi) 

experienced moderate growth, 26 districts (Chandpur, Comilla, Cox's Bazar, Feni, Jamalpur, 

Jhalokati, Jhenaidaha, Khulna, Kishoreganj, Kushtia, Lakshmipur, Manikganj, Naogaon, 

Narayanganj, Natore, Nawabganj, Noakhali, Patuakhali, Pirojpur, Rangamati, Shariatpur, 

Sirajganj) experienced slow growth, 16 districts (Bandarban, Dinajpur, Gaibandha, Gopalganj, 

Jessore, Kurigram, Madaripur, Magura, Mymensingh, Narail, Pabna, Rajbari, Rangpur, 

Sherpur, Tangail, Thakurgaon) had negative growth and 12 districts (Brahamanbaria, Faridpur, 

Habiganj, Lalmonirhat, Maulvibazar, Munshiganj, Netrakona, Nilphamari, Panchagarh, Satkhira, 

Sunamganj, Sylhet) had extremely negative growth in livestock GDP. 

Growth in Fishery GDP: Bangladesh experienced high growth (6.62% per annum) in fisheries 

GDP in the late 1990s, slow growth (0.12% per annum) in the early 2000s and slow growth 

(1.02% per annum) in the overall period in its fishery GDP (Table 19). During the late 1990s, 48 

districts (Bagerhat, Barguna, Barisal, Bhola, Bogra, Brahamanbaria, Chandpur, Chittagong, 

Chuadanga, Cox's Bazar, Dhaka, Dinajpur, Faridpur, Feni, Gazipur, Gopalganj, Habiganj, 

Jessore, Jhenaidaha, Joypurhat, Khulna, Kishoreganj, Kurigram, Kushtia, Lalmonirhat, 

Madaripur, Magura, Manikganj, Meherpur, Munshiganj, Narail, Narayanganj, Narsingdi, 

Nilphamari, Noakhali, Pabna, Panchagarh, Patuakhali, Pirojpur, Rajbari, Rangpur, Satkhira, 

Shariatpur, Sherpur, Sunamganj, Tangail, Thakurgaon) had high growth, 10 districts (Comilla, 


19

Jamalpur, Maulvibazar, Mymensingh, Naogaon, Nawabganj, Netrakona, Rajshahi, Rangamati, 

Sylhet) had moderate growth, two districts (Lakshmipur, Sirajganj) had slow growth, three 

districts (Gaibandha, Jhalokati, Natore) had negative growth and one (Bandarban) had extremely 

negative growth in fishery GDP. 

In the early 2000s, four districts (Brahamanbaria, Naogaon, Natore, Sunamganj) had high 

growth, two districts (Feni, Netrakona) had moderate growth, 23 districts (Chittagong, 

Chuadanga, Comilla, Cox's Bazar, Dinajpur, Gazipur, Jamalpur, Jessore, Jhenaidaha, Khulna, 

Kurigram, Lakshmipur, Madaripur, Meherpur, Narsingdi, Nawabganj, Noakhali, Pabna, 

Panchagarh, Rajbari, Rajshahi, Sherpur, Sirajganj, Thakurgaon) had slow growth and 28 district 

(Bagerhat, Barguna, Barisal, Bhola, Bogra, Chandpur, Dhaka, Gopalganj, Habiganj, Jhalokati, 

Joypurhat, Kishoreganj, Kushtia, Lalmonirhat, Magura, Manikganj, Maulvibazar, Munshiganj, 

Narail, Narayanganj, Nilphamari, Patuakhali, Pirojpur, Rangamati, Rangpur, Satkhira, 

Shariatpur, Tangail) had negative growth and 5 districts (Bandarban, Faridpur, Gaibandha, 

Mymensingh, Sylhet) had extremely negative growth in fishery GDP. 

During the overall period (1995/96-2005/06), 18 districts (Bandarban, Brahamanbaria, 

Chuadanga, Dinajpur, Gazipur, Jhenaidaha, Joypurhat, Magura, Manikganj, Meherpur, Naogaon, 

Narayanganj, Narsingdi, Nilphamari, Panchagarh, Sirajganj, Sunamganj, Thakurgaon) had high 

growth, 12 districts (Chittagong, Faridpur, Jessore, Jhalokati, Kushtia, Maulvibazar, Narail, 

Natore, Noakhali, Pabna, Rangpur, Tangail) experienced moderate growth, 13 districts 

(Bagerhat, Barguna, Barisal, Comilla, Cox's Bazar, Dhaka, Feni, Habiganj, Khulna, Nawabganj, 

Patuakhali, Rajshahi, Shariatpur) experienced slow growth, 13 districts (Bhola, Bogra, 

Gaibandha, Gopalganj, Jamalpur, Kurigram, Lalmonirhat, Munshiganj, Pirojpur, Rajbari, 

Rangamati, Satkhira, Sylhet) had negative growth and seven districts (Chandpur, Kishoreganj, 

Lakshmipur, Madaripur, Mymensingh, Netrakona, Sherpur) had extremely negative growth in 

fishery GDP. 

Growth in Forestry GDP: Bangladesh experienced moderate growth (3.97% per annum) in 

forestry GDP in the late 1990s, slow growth (2.60% per annum) in the early 2000s and slow 

growth (2.5% per annum) in the overall period in its forestry GDP (Table 20). All districts 

experienced slow growth in the late 1990s, moderate growth in the early 2000s and slow growth 

in the overall period. 


20

Table 11: District Level Growth in GDP, by source: 1995/96- 2005/06. 

Districts Annual Compound growth rate 

(%) 


Districts Annual Compound rate of growth (%) 

Agric Indust Servi Total 

Agriculture Industry Service Total 

ulture ry ce GDP 

GDP 

Bagerhat 1.8 5.4 5.5 4.2 Madaripur -1.2 5.4 4.5 3.1 

Bandarban -8.0 5.4 3.8 0.7 Magura 1.3 5.5 5.6 3.8 

Barguna -0.1 5.4 5.3 3.1 Manikganj 0.9 5.3 4.9 3.8 

Barisal 0.6 5.3 4.9 3.8 Maulvibazar -1.5 5.4 5.2 3.1 

Bhola -0.1 5.4 5.1 3.1 Meherpur -1.3 5.6 5.5 3.5 

Bogra 2.9 5.5 5.8 4.8 Munshiganj -1.2 5.2 4.6 3.6 

Brahamanbari 2.8 4.0 5.3 4.3 Mymensingh -3.4 5.5 4.6 2.1 

a 

Chandpur -0.9 5.6 4.8 3.2 Naogaon 3.3 5.5 6.0 4.9 

Chittagong 1.8 5.3 4.6 4.6 Narail -0.9 5.4 4.8 2.6 

Chuadanga -1.3 5.4 4.7 3.2 Narayanganj 2.4 4.9 4.3 4.5 

Comilla 1.3 3.5 5.3 3.8 Narsingdi 1.1 4.9 5.2 4.4 

Cox's Bazar 0.2 5.1 5.1 3.4 Natore 2.5 5.4 5.9 4.7 

Dhaka 2.5 5.0 4.5 4.7 Nawabganj 2.3 5.5 5.2 4.3 

Dinajpur 2.8 5.5 5.7 4.6 Netrakona -4.0 5.5 4.4 1.4 

Faridpur -0.9 5.5 5.0 3.5 Nilphamari 1.5 5.5 5.4 4.1 

Feni 1.0 4.8 5.4 4.1 Noakhali 1.5 5.5 5.6 4.3 

Gaibandha 0.5 5.5 5.6 3.9 Pabna 2.5 5.1 5.3 4.6 

Gazipur 2.6 5.0 4.8 4.7 Panchagarh 2.6 5.5 6.0 4.6 

Gopalganj -1.2 5.6 4.3 2.9 Patuakhali 0.4 5.3 5.2 3.2 

Habiganj 1.4 5.4 5.3 4.2 Pirojpur -0.3 5.4 4.8 3.3 

Jamalpur 1.4 5.4 5.5 4.3 Rajbari -1.7 5.4 5.1 3.2 

Jessore 0.9 5.3 5.4 4.1 Rajshahi 2.7 5.4 5.1 4.6 

Jhalokati 0.8 5.3 4.9 3.8 Rangamati -8.3 -2.7 3.2 -1.9 

Jhenaidaha 1.8 5.4 5.6 4.2 Rangpur 1.1 5.5 5.4 4.2 

Joypurhat 4.7 5.4 6.5 5.6 Satkhira 1.2 5.4 5.5 4.0 

Khagrachhari 8.6 5.4 6.4 7.5 Shariatpur -0.6 5.4 5.0 3.3 

Khulna 2.3 5.2 4.2 4.0 Sherpur 0.5 5.5 5.5 3.9 

Kishoreganj 7.7 5.5 6.3 6.7 Sirajganj 3.0 5.6 7.3 5.8 

Kurigram 0.3 5.5 5.2 3.6 Sunamganj 2.6 5.3 5.4 4.4 

Kushtia -3.8 5.2 5.1 3.1 Sylhet 0.2 8.3 5.0 4.6 

Lakshmipur -2.7 5.5 4.3 1.9 Tangail 1.3 5.2 5.7 4.4 

Lalmonirhat 0.1 5.6 5.3 3.5 Thakurgaon 2.1 5.5 2.2 2.6 

BANGLAD 

ESH 

1.1 5.2 5.0 4.2 

Source: Author’s calculation, based on data collected from Directorate of Fisheries. 

21

Table 12: District Level Growth in Different Sub-Sectors of Agricultural GDP: 1995/96- 

2005/06. 

Districts Annual Compound rate of growth (%) in Districts Annual Compound rate of growth (%) in 

Crop Live Fish Fore Agri 

Crop Live Fish For Agri 

stock eries stry culture 

stock eries estry culture 

Bagerhat 2.3 0.4 1.4 2.5 1.8 Madaripur -0.8 -2.0 -3.0 2.5 3.1 

Bandarban -13.6 -2.0 7.8 2.5 -8.0 Magura 0.8 -2.1 6.0 2.5 3.8 

Barguna -1.5 0.9 0.9 2.5 -0.1 Manikganj -0.1 0.3 7.0 2.5 3.8 

Barisal -0.5 0.7 1.8 2.5 0.6 Maulvibazar -3 -3.0 3.0 2.5 3.1 

Bhola -0.3 4.9 -1.6 2.5 -0.1 Meherpur -4.6 4.7 14.6 2.5 3.5 

Bogra 3.9 0.6 -0.3 2.5 2.9 Munshiganj -0.8 -4.5 -1.8 2.5 3.6 

Brahamanbaria 1.4 -3.3 8.6 2.5 2.8 Mymensingh -2.5 -0.6 -8.0 2.5 2.1 

Chandpur 1.4 0.8 -4.8 2.5 -0.9 Naogaon 2.9 2.2 6.5 2.5 4.9 

Chittagong 0.0 4 3.6 2.5 1.8 Narail -1.9 -1.3 4.0 2.5 2.6 

Chuadanga -4.4 4.4 12.6 2.5 -1.3 Narayanganj -1.6 0.6 10.7 2.5 4.5 

Comilla 1.3 2 0.6 2.5 1.3 Narsingdi -1 4.4 5.1 2.5 4.4 

Cox's Bazar -0.7 0.7 0.6 2.5 0.2 Natore 2.3 2.8 3.2 2.5 4.7 

Dhaka -0.5 11.1 2.0 2.5 2.5 Nawabganj 2.2 1.9 2.9 2.5 4.3 

Dinajpur 2.8 -0.2 5.3 2.5 2.8 Netrakona -4.4 -3.2 -6.2 2.5 1.4 

Faridpur -1.6 -5.5 3.8 2.5 -0.9 Nilphamari 1.4 -3.3 15.6 2.5 4.1 

Feni 0.0 0.9 2.2 2.5 1.0 Noakhali -0.9 2.5 4.8 2.5 4.3 

Gaibandha 1.1 -1.5 -1.4 2.5 0.5 Pabna 2.8 -0.1 3.2 2.5 4.6 

Gazipur -1.5 8.1 7.2 2.5 2.6 Panchagarh 2.9 -3.1 6.8 2.5 4.6 

Gopalganj -1.8 -0.9 -2.0 2.5 -1.2 Patuakhali -0.9 0.7 1.6 2.5 3.2 

Habiganj 1.9 -3.9 2.0 2.5 1.4 Pirojpur -0.6 1.1 -1.5 2.5 3.3 

Jamalpur 1.3 2.6 -0.1 2.5 1.4 Rajbari -2.5 -0.4 -2.4 2.5 3.2 

Jessore 0.5 -1.2 3.7 2.5 0.9 Rajshahi 2.7 4.9 1.7 2.5 4.6 

Jhalokati -1.5 1.3 4.5 2.5 0.8 Rangamati -16.5 0.8 -1.8 2.5 -1.9 

Jhenaidaha 1.2 1.1 5.8 2.5 1.8 Rangpur 1.2 -1.2 3.3 2.5 4.2 

Joypurhat 3.9 6.1 9.5 2.5 4.7 Satkhira 2.8 -3.1 -0.5 2.5 4.0 

Khagrachhari 9.3 4.5 0.0 2.5 8.6 Shariatpur -2.1 0.7 1.8 2.5 3.3 

Khulna 2.1 1.6 2.4 2.5 2.3 Sherpur 1.2 -1.1 -4.5 2.5 3.9 

Kishoreganj 12.2 0.2 -3.4 2.5 7.7 Sirajganj 2.7 0.8 7.9 2.5 5.8 

Kurigram 0.4 -0.2 -0.4 2.5 0.3 Sunamganj 2.2 -5.1 9.2 2.5 4.4 

Kushtia -6.8 0.9 3.2 2.5 -3.8 Sylhet 1.5 -3.7 -2.1 2.5 4.6 

Lakshmipur -0.9 1.3 -6.0 2.5 -2.7 Tangail 1.2 -0.5 5.0 2.5 4.4 

Lalmonirhat 0.9 -3.5 -2.0 2.5 0.1 Thakurgaon 2.3 -2.7 6.7 2.5 2.6 

BANGLADESH 1 0.5 1 2.5 4.2 

Source: Author’s calculation, based on data collected from BBS. 


22

Table 13: District Level Growth in GDP (At Current Price): late 1990s (1995/96-1999/00), early 

2000s (2000/01 – 2005/06) and Overall (1995/96-2005/06). 

Districts Annual Compound rate of 

growth (%) in 

Late 1990s Early 2000s Overall 

(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 

Bagerhat 4.56 6.18 4.2 Madaripur 3.55 5.48 3.1 

Bandarban 3.07 5.71 0.7 Magura 4.07 5.97 3.8 

Barguna 3.84 3.20 3.1 Manikganj 3.75 4.74 3.8 

Barisal 3.71 5.06 3.8 Maulvibazar 3.72 5.20 3.1 

Bhola 3.43 4.06 3.1 Meherpur 4.19 5.77 3.5 

Bogra 4.56 5.82 4.8 Munshiganj 3.58 5.50 3.6 

Brahamanbaria 2.67 5.77 4.3 Mymensingh 3.98 3.99 2.1 

Chandpur 4.69 4.54 3.2 Naogaon 4.25 6.14 4.9 

Chittagong 3.82 7.06 4.6 Narail 3.58 5.91 2.6 

Chuadanga 4.04 6.05 3.2 Narayanganj 3.25 7.74 4.5 

Comilla 2.46 5.06 3.8 Narsingdi 3.67 6.55 4.4 

Cox's Bazar 3.93 4.75 3.4 Natore 4.05 6.48 4.7 

Dhaka 4.11 8.06 4.7 Nawabganj 4.40 6.10 4.3 

Dinajpur 4.08 5.16 4.6 Netrakona 3.59 4.31 1.4 

Faridpur 3.93 5.40 3.5 Nilphamari 4.03 5.27 4.1 

Feni 3.43 5.20 4.1 Noakhali 4.40 4.41 4.3 

Gaibandha 3.88 5.07 3.9 Pabna 4.08 6.54 4.6 

Gazipur 3.78 7.59 4.7 Panchagarh 4.43 4.74 4.6 

Gopalganj 3.44 5.13 2.9 Patuakhali 3.26 3.47 3.2 

Habiganj 2.74 5.11 4.2 Pirojpur 3.31 4.70 3.3 

Jamalpur 4.32 5.99 4.3 Rajbari 4.32 6.01 3.2 

Jessore 3.84 6.67 4.1 Rajshahi 4.84 6.74 4.6 

Jhalokati 2.41 4.79 3.8 Rangamati -5.10 6.01 -1.9 

Jhenaidaha 3.72 6.51 4.2 Rangpur 4.10 5.97 4.2 

Joypurhat 4.41 5.36 5.6 Satkhira 4.18 6.80 4.0 

Khagrachhari 4.06 15.43 7.5 Shariatpur 4.16 5.27 3.3 

Khulna 3.81 6.86 4.0 Sherpur 4.66 5.69 3.9 

Kishoreganj 3.58 4.23 6.7 Sirajganj 3.69 6.56 5.8 

Kurigram 5.46 5.44 3.6 Sunamganj 3.71 5.34 4.4 

Kushtia 3.78 6.17 3.1 Sylhet 4.80 5.29 4.6 

Lakshmipur 3.01 4.60 1.9 Tangail 3.88 5.90 4.4 

Lalmonirhat 5.08 5.23 3.5 Thakurgaon 4.22 4.84 2.6 


BANGLADESH 3.85 6.17 4.2 

23

Table 14: District Level Growth in Agricultural GDP (current price): late 1990s (1995/96- 

1999/00), early 2000s (2000/01 – 2005/06) and Overall (1995/96-2005/06). 




(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 

Bagerhat 5.08 4.93 1.8 Madaripur 3.70 2.78 -1.2 

Bandarban 1.15 -0.49 -8.0 Magura 3.63 4.21 1.3 

Barguna 3.38 -0.75 1.1 Manikganj 4.61 0.46 0.9 

Barisal 3.84 0.68 -0.1 Maulvibazar 3.50 1.17 -1.5 

Bhola 2.88 0.40 0.6 Meherpur 3.60 1.99 -1.3 

Bogra 4.33 3.08 -0.1 Munshiganj 4.86 0.32 -1.2 

Brahamanbaria 3.57 2.00 2.9 Mymensingh 3.65 -1.70 -3.4 

Chandpur 5.80 -0.08 2.8 Naogaon 3.83 4.73 3.3 

Chittagong 3.43 0.87 -0.9 Narail 3.29 4.24 -0.9 

Chuadanga 3.75 1.97 1.8 Narayanganj 5.06 -0.37 2.4 

Comilla 2.62 1.06 -1.3 Narsingdi 4.54 1.26 1.1 



Dinajpur 3.70 1.85 2.5 Netrakona 3.10 -0.01 -4.0 


Feni 4.06 0.57 -0.9 Noakhali 4.85 -0.18 1.5 



Gopalganj 3.93 2.21 2.6 Patuakhali 2.43 -0.35 0.4 

Habiganj 3.58 1.18 -1.2 Pirojpur 2.91 0.74 -0.3 

Jamalpur 4.21 3.26 1.4 Rajbari 4.92 2.99 -1.7 


Jhalokati -0.05 0.49 0.9 Rangamati 2.36 1.97 -8.3 



Khagrachhari 3.00 22.75 4.7 Shariatpur 4.65 2.25 -0.6 




Kushtia 3.09 1.42 0.3 Sylhet 4.08 -0.25 0.2 

Lakshmipur 1.86 0.52 -3.8 Tangail 3.97 2.71 1.3 

Lalmonirhat 5.85 2.11 -2.7 Thakurgaon 3.82 1.76 2.1 


BANGLADESH 3.88 2.09 -1.2 

24

Table 15: District Level Growth in Service Sector GDP: late 1990s (1995/96-1999/00), early 

2000s (2000/01 – 2005/06) and Overall (1995/96-2005/06). 


Late 1990s 

(1995/96- 

1999/00) 

Early 2000s 

(2000/01- 

2005/06) 

Overall 

(1995/96- 

2005/06) 


Late 1990s 

(1995/96- 

1999/00) 

Early 2000s 

(2000/01- 

2005/06) 

Overall 

(1995/96- 

2005/06) 
















Feni 3.7 6.5 5.4 Noakhali 3.9 6.2 5.6 







Jhalokati 3.2 6.3 4.9 Rangamati 3.6 7.3 3.2 












25

Table 16: District Level Growth in Industrial GDP: late 1990s (1995/96-1999/00), early 2000s 

(2000/01 – 2005/06) and Overall (1995/96-2005/06). 




(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 
















Feni 1.72 7.60 4.80 Noakhali 4.91 7.28 5.52 


















BANGLADESH 4.19 7.51 5.16 

26

Table 17: District Level Growth in Crop GDP: late 1990s (1995/96-1999/00), early 2000s 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 




Late 1990s Early Overall 

(1995/96- 2000s (1995/96- 

1999/00) (2000/01- 

2005/06) 

2005/06) 

Bagerhat 4.2 10.8 2.3 Madaripur 3.8 3.4 -0.8 

Bandarban 1.4 -3.2 -13.6 Magura 2.8 5.6 0.8 

Barguna -1.0 -2.0 -1.5 Manikganj 4.3 0.3 -0.1 


Bhola 0.6 1.3 -0.3 Meherpur 3.7 1.6 -4.6 

Bogra 3.9 3.8 3.9 Munshiganj 4.5 0.3 -0.8 



Chittagong 2.2 0.4 0.0 Narail 2.8 5.6 -1.9 

Chuadanga 3.8 1.6 -4.4 Narayanganj 4.0 0.3 -1.6 

Comilla 1.8 0.2 1.3 Narsingdi 3.8 0.3 -1.0 

Cox's Bazar 2.2 0.4 -0.7 Natore 4.8 4.4 2.3 

Dhaka 4.9 0.3 -0.5 Nawabganj 5.0 4.4 2.2 

Dinajpur 3.4 1.7 2.8 Netrakona 3.1 -2.6 -4.4 

Faridpur 4.2 3.4 -1.6 Nilphamari 4.2 2.6 1.4 

Feni 3.3 -1.7 0.0 Noakhali 3.4 -1.7 -0.9 


Gazipur 3.9 0.3 -1.5 Panchagarh 4.1 1.7 2.9 

Gopalganj 3.3 3.4 -1.8 Patuakhali -0.1 -2.0 -0.9 

Habiganj 3.4 1.3 1.9 Pirojpur 1.0 1.3 -0.6 



Jhalokati -0.5 1.3 -1.5 Rangamati 1.7 3.3 -16.5 



Khagrachhari 3.7 31.6 9.3 Shariatpur 4.7 3.4 -2.1 




Kushtia 2.7 1.6 -6.8 Sylhet 4.6 1.3 1.5 

Lakshmipur 2.2 -1.7 -0.9 Tangail 4.3 3.0 1.2 




27

Table 18: District Level Growth in Livestock GDP: late 1990s (1995/96-1999/00), early 2000s 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 

Bagerhat -0.5 3.0 0.4 Madaripur 0.6 3.0 -2.0 

Bandarban 0.7 3.0 -2.0 Magura 0.7 3.0 -2.1 


Barisal 0.9 3.0 0.7 Maulvibazar 0.5 3.0 -3.0 


Bogra 1.1 3.0 0.6 Munshiganj 0.8 3.0 -4.5 

Brahamanbaria 1.5 3.0 -3.3 Mymensingh 0.6 3.0 -0.6 


Chittagong 0.4 3.0 4.0 Narail 0.1 3.0 -1.3 




Dhaka 0.1 3.0 11.1 Nawabganj -0.1 3.0 1.9 

Dinajpur 1.4 3.0 -0.2 Netrakona 0.5 3.0 -3.2 

Faridpur 0.5 3.0 -5.5 Nilphamari 0.6 3.0 -3.3 

Feni 1.2 3.0 0.9 Noakhali 2.1 3.0 2.5 

Gaibandha 0.7 3.0 -1.5 Pabna 0.7 3.0 -0.1 

Gazipur 0.4 3.0 8.1 Panchagarh 0.3 3.0 -3.1 

Gopalganj 0.9 3.0 -0.9 Patuakhali 1.8 3.0 0.7 

Habiganj 1.0 3.0 -3.9 Pirojpur 1.0 3.0 1.1 


Jessore 1.4 3.0 -1.2 Rajshahi 1.0 3.0 4.9 


Jhenaidaha 0.2 3.0 1.1 Rangpur 0.5 3.0 -1.2 

Joypurhat 0.9 3.0 6.1 Satkhira 0.4 3.0 -3.1 


Khulna 1.0 3.0 1.6 Sherpur 0.8 3.0 -1.1 


Kurigram 0.2 3.0 -0.2 Sunamganj 1.1 3.0 -5.1 

Kushtia 0.6 3.0 0.9 Sylhet 0.6 3.0 -3.7 

Lakshmipur 1.6 3.0 1.3 Tangail 0.3 3.0 -0.5 

Lalmonirhat 0.4 3.0 -3.5 Thakurgaon 0.6 3.0 -2.7 



28

Table 19: District Level Growth in Fisheries GDP: late 1990s (1995/96-1999/00), early 2000s 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 

Bagerhat 7.1 -0.2 1.4 Madaripur 7.4 0.3 -3.0 

Bandarban -15.4 -3.4 7.8 Magura 12.7 -0.8 6.0 

Barguna 10.0 -1.4 0.9 Manikganj 16.0 -2.1 7.0 

Barisal 10.7 -1.5 1.8 Maulvibazar 4.7 -0.8 3.0 

Bhola 5.1 -1.6 -1.6 Meherpur 11.0 1.7 14.6 

Bogra 9.9 -0.9 -0.3 Munshiganj 10.1 -2.4 -1.8 


Chandpur 11.5 -1.9 -4.8 Naogaon 4.0 9.7 6.5 

Chittagong 6.3 0.5 3.6 Narail 10.6 -1.3 4.0 

Chuadanga 12.7 1.4 12.6 Narayanganj 11.7 -2.6 10.7 


Cox's Bazar 6.9 0.5 0.6 Natore -2.2 6.2 3.2 

Dhaka 11.3 -2.6 2.0 Nawabganj 3.5 1.7 2.9 

Dinajpur 7.3 1.4 5.3 Netrakona 3.9 4.0 -6.2 

Faridpur 11.1 -5.5 3.8 Nilphamari 6.2 -2.7 15.6 

Feni 6.8 3.5 2.2 Noakhali 8.8 0.2 4.8 

Gaibandha -0.8 -4.5 -1.4 Pabna 10.9 0.7 3.2 


Gopalganj 7.7 -2.2 -2.0 Patuakhali 6.1 0.0 1.6 

Habiganj 7.1 -0.9 2.0 Pirojpur 6.8 -2.4 -1.5 

Jamalpur 3.3 1.9 -0.1 Rajbari 5.6 2.0 -2.4 


Jhalokati -1.6 -2.6 4.5 Rangamati 4.9 -1.0 -1.8 

Jhenaidaha 5.6 2.0 5.8 Rangpur 6.6 -0.2 3.3 

Joypurhat 8.9 -1.1 9.5 Satkhira 8.0 -0.2 -0.5 

Khagrachhari n.a. n.a. n.a. Shariatpur 7.3 -1.7 1.8 

Khulna 7.0 0.5 2.4 Sherpur 8.7 0.5 -4.5 

Kishoreganj 5.8 -0.4 -3.4 Sirajganj 2.2 0.3 7.9 

Kurigram 22.9 0.6 -0.4 Sunamganj 10.2 8.6 9.2 

Kushtia 9.5 -2.2 3.2 Sylhet 4.6 -5.7 -2.1 

Lakshmipur 1.4 2.4 -6.0 Tangail 9.2 -0.1 5.0 

Lalmonirhat 20.2 -1.9 -2.0 Thakurgaon 9.8 0.4 6.7 



29

Table 20: District Level Growth in Forestry GDP: late 1990s (1995/96-1999/00), early 2000s 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 





(1995/96- (2000/01- (1995/96- 

1999/00) 2005/06) 2005/06) 
















Feni 4.0 2.6 2.5 Noakhali 4.0 2.6 2.5 



















30

Determinants of Growth 

In the above analysis, we have shown that there is variation among districts in terms of growth in 

agriculture and total GDP. What factors explain varied level of growth among districts? To know 

this, multiple regression analysis was carried out. Results indicate that level of agricultural 

growth and share of non-farm household in the district have significant contribution to the 

overall growth of the district (Table 21). This reconfirms the myth that overall growth of the 

economy of Bangladesh depends to a large extent on the performance of its agriculture sector. 

An implication of this finding is that agricultural growth is the necessary pre-condition for 

overall growth. On the other hand, agricultural growth depends on the growth rates of its sub- 

sectors. Growth rates in service sector of the district also have positive and significant effect on 

the level of agricultural growth. We wanted to know the impact of human capital on the level of 

agricultural growth. In this case, available data was on Human Poverty Index (HPI) in the base 

year (1995). We found that HPI has significant negative impact on agricultural growth indicating 

that districts with high human poverty (in other words low human capital) achieved lower level 

of agricultural growth. 


31

Table 21: Determinants of district level GDP growth and Agricultural Growth during 1995/96- 

2005/06. 

Variables/Statistics Equation 

GDP growth Agriculture Growth 

1 2 3 1 2 3 4 

Constant 

2.641 3.316 4.230 7.253 4.686 6.487 3.776 

HPI 1995 

Per Capita GDP (1995- 

96) 

Share of Farm Holding 

As % of Total Holding 

(1996) 

Share of Non-Farm 

Holding as % of Total 

Holding (1996) 

Holding With No Land 

as % of Total Holdings 

Agriculture Growth 

Rate 

Crop GDP 

Animal GDP 

Fishing GDP 

Industry GDP 

Service GDP 

Road Density 

(0.566) 

0.008 

(0.014) 

0.020* 

(0.008) 

-0.015 

(0.013) 

0.407*** 

(0.799) 

0.664 

(0.024) 

(0.697) 

-0.002 

(0.014) 

0.011 

(0.009) 

-0.011 

(0.013) 

0.427*** 

(0.025) 

0.545 

(0.804) 


(0.899) 

-0.017 

(0.017) 

-0.001 

(0.001) 

0.016* 

(0.009) 

-0.007 

(0.013) 

0.435*** 

(0.025) 

0.390 

(0.798) 

(2.407) 

-0.108 

(0.045) 

-0.036 

(0.026) 

0.008 

(0.040) 

0.547 

(0.048) 

(2.044) 

-0.080** 

(0.399) 

-0.023 

(0.21) 

0.016 

(0.033) 

0.568*** 

(0.040) 

0.111** 

(0.049) 

0.147*** 

(0.031) 

(2.467) 

-0.077* 

(0.041) 

-0.049* 

(0.027) 

0.015 

(0.037) 

0.559*** 

(0.043) 

0.168*** 

(0.034) 

(4.496) 

-0.183** 

(0.072) 

-0.083** 

(0.040) 

0.006 

(0.068) 

0.363 

(0.282) 

1.488*** 

(0.399) 

Road (Dummy) 

-0.676 

(0.453) 

-0.173 

(0.383) 

-0.381 

(0.402) 

-0.962 

(0.718) 

Low Flood Prone 

0.184 

(0.333) 

0.110 

(0.331) 

-0.359 

(0.834) 

Flood Prone 

0.095 

(0.298) 

-0.059 

(0.310) 

-0.468 

(0.670) 

Drought Prone 

-0.276 

(0.303) 

-0.463 

(0.321) 

-0.195 

(0.725) 

Tidal Surge 

-0.176 

(0.301) 

-0.339 

(0.314) 

0.645 

(0.745) 

Mixed 

-0.088 

(0.369) 

-0.200 

(0.370) 

0.021 

(1.033) 

Adjusted R 2 0.851 0.855 0.732 0.819 0.807 0.333 

F-Value 35.22*** 33.19*** 35.32*** 41.67*** 24.96*** 6.236*** 

Note: Three stars (***), two stars (**) and one star (*) indicate significant at 1, 5 and 10 percent respectively 

32

III. INCOME DISTRIBUTION AND INCOME INEQUALITY: 

TRENDS AND DETERMINANTS 

III.1 Per Capita Income 

Share of income from agriculture to the total income has declined over time but share of business 

and commerce and professional wages and salary has increased (Table 22). In rural areas also 

share of income from agriculture declined and share of non-farm income sources has increased 

over time. 

Table 22: Percentage share of income of households by sources of income 

Residence/ 

survey year 

Total Agriculture Business 

and 

commerce 


Professional 

wages and 

salary 

Housing 

services 

Gift and 

remittance 

others 

National 

2005 100.0 20.0 23.1 31.3 6.7 9.8 8.7 

2000 100.0 18.0 25.9 29.4 7.8 10.9 8.0 

1995-96 100.0 26.3 20.3 30.3 6.8 9.1 7.2 

1991-92 100.0 33.4 14.8 24.3 9.4 10.3 7.8 

Rural 

2005 100.0 28.7 17.3 28.1 5.1 12.0 8.7 

2000 100.0 25.5 22.4 27.7 5.0 11.0 8.4 

1995-96 100.0 35.4 14.7 27.7 6.5 9.6 6.1 

1991-92 100.0 40.1 12.4 21.1 9.1 10.6 6.7 

Urban 

2005 100.0 5.8 33.1 36.9 9.5 5.9 8.7 

2000 100.0 3.7 32.4 32.6 13.1 10.6 7.5 

1995-96 100.0 4.8 33.4 36.6 7.4 7.9 9.9 

1991-92 100.0 5.9 24.7 37.9 11.0 9.1 11.4 

Source: Report of the Household Income and Expenditure Survey 2005. 

Per capita income has increased in all districts except two districts (Bandarban and Rangamati) 

where per capita income has decreased in 2005/06 against that of 1995/96 (Table 23). High 

increase (more than 50%) was observed in Kishoregonj and low increase (up to 20%) was 

observed in six districts (Netrakona, Lakshmipur, Mymensingh, Thakurgaon, Chuadanga, 

Khagrachhari) and medium increase (20% to 50%) was observed in all other districts. 

During 1995/96 to 2005/06, annual compound rate of growth in per capita income was high 

(>5% annual compound rate of growth) in Kishoreganj (Table 24). Moderate growth (3-5% 

annual compound rate of growth) was observed in 17 districts (Bagerhat, Brahamanbaria, Bogra, 

Dinajpur, Feni, Jamalpur, Joypurhat, Khagrachhari, Naogaon, Natore, Pabna, Panchagarh, 

33

Rajshahi, Sirajganj, Sunamganj, Sylhet and Tangail). Negative growth was observed in two 

districts (Bandarban and Rangamati). All other districts experienced slow growth (up to 3% 

annual compound rate of growth) in per capita income. 

Per capita growth in agricultural income during 1995/96 to 2005/06 is reported in Table 24. Per 

capita agricultural income had high growth (>5% annual compound rate of growth) in two 

districts (Khagrachhari, Kishoreganj), moderate growth (3-5% annual compound rate of growth) 

in one district (Joypurhat), slow growth (up to 3% annual compound rate of growth) in 27 

districts (Magura, Feni, Jhalokati, Nilphamari, Comilla, Chittagong, Jamalpur, Habiganj, 

Tangail, Noakhali, Jhenaidaha, Narayanganj, Thakurgaon, Nawabganj, Gazipur, Khulna, 

Bagerhat, Rajshahi, Panchagarh, Sunamganj, Pabna, Dinajpur, Natore, Sirajganj, Bogra, 

Brahamanbaria, Naogaon). During this period, 30 districts (Mymensingh, Lakshmipur, 

Chuadanga, Rajbari, Maulvibazar, Meherpur, Faridpur, Gopalganj, Munshiganj, Madaripur, 

Chandpur, Shariatpur, Narail, Bhola, Cox's Bazar, Lalmonirhat, Sylhet, Barguna, Pirojpur, 

Patuakhali, Kurigram, Sherpur, Jessore, Gaibandha, Rangpur, Narsingdi, Manikganj, Barisal, 

Satkhira, Dhaka) negative growth (>0 to -3% annual compound rate of growth), four districts 

(Rangamati, Bandarban, Netrakona, Kushtia) experienced extremely negative (>-3% annual 

compound rate of growth). 

Determinants of Income 

An analysis of determinants of income revealed that per capita income of a district in 2005/06 

was significantly and positively dependant on the base year per capita income (in 1995/96), GDP 

growth rate (Table 26). In other words, higher the level of initial income, higher the level of 

current per capita income and higher the GDP growth, higher the per capita income in the 

district. Proportion of landless household had a significant negative effect on per capita income 

level. This is quite obvious due to the fact that districts with large number of families (with most 

production income generating asses, land) had lower level of per capita income. One implication 

of these findings is that to raise the average income level of this negative and particularly for the 

landless community. Government must take actions so that less endowed people can have greater 

access to new productive assets such as solar dryer, power tiller, power pump, harvester, 

thresher, etc. 


34

Table 23: Trends in Per Capita Income in Bangladesh, by District: 1995/96- 2005/06. 



2005/06, 

compared 

to 

1995/96 




2005/06, 

compared 

to 

1995/96 
















Feni 237 262 318 34.6 Noakhali 243 274 325 33.9 

















BANGLADESH 323 355 431 33.1 


35

Table 24: District Level Growth in Per Capita Income, by source: 1995/96- 2005/06. 

Districts Annual Compound rate of growth (%) in Districts Annual Compound rate of growth 

(%) in 

Late Early 2000s Overall 

Late Early Overall 

1990s (2000/01- (1995/96- 

1990s 2000s (1995/96- 

(1995/96- 2005/06) 2005/06) 

(1995/96- (2000/01- 2005/06) 

1999/00) 

1999/00) 2005/06) 


Bandarban 0.7 4.4 -1.1 Magura 2.8 4.6 2.5 














Feni 2.7 3.9 3.1 Noakhali 3.1 3.1 3.0 




















36

Table 25: District Level Growth in Per Capita Agricultural Income: 1995/96- 2005/06. 


Crop Live 

stock 

Fish 

eries 

For 

estry 


Agri 

culture 

Crop Live 

stock 

Fish 

eries 

For 

estry 

37 

Agri 

culture 

Bagerhat 1.3 -0.5 0.4 1.5 0.9 Madaripur -1.8 -3.0 -3.9 1.5 -2.2 

Bandarban -15.4 -3.8 6.0 0.6 -9.8 Magura -0.5 -3.4 4.7 1.2 0.0 

Barguna -2.5 -0.1 -0.2 1.4 -1.2 Manikganj -1.2 -0.9 5.8 1.3 -0.3 

Barisal -1.4 -0.2 0.9 1.5 -0.3 Maulvibazar -4.3 -4.3 1.6 1.1 -2.9 

Bhola -1.6 3.5 -3.0 1.1 -1.5 Meherpur -6.1 3.2 13.0 0.9 -2.8 

Bogra 2.7 -0.6 -1.5 1.2 1.7 Munshiganj -1.9 -5.6 -2.8 1.4 -2.2 

Brahamanbaria 0.3 -4.3 7.5 1.4 1.8 Mymensingh -3.7 -1.9 -9.2 1.2 -4.7 

Chandpur 0.3 -0.2 -5.8 1.4 -2.0 Naogaon 1.8 1.0 5.4 1.3 2.2 

Chittagong -1.5 2.5 2.0 0.9 0.2 Narail -2.8 -2.2 3.1 1.5 -1.8 

Chuadanga -6.1 2.7 10.9 0.7 -3.0 Narayanganj -3.4 -1.2 8.9 0.7 0.6 

Comilla 0.1 0.8 -0.6 1.3 0.1 Narsingdi -2.4 3.1 3.7 1.1 -0.3 

Cox's Bazar -2.3 -0.9 -1.0 0.8 -1.4 Natore 1.3 1.8 2.1 1.4 1.4 

Dhaka -3.2 8.4 -0.6 -0.2 -0.1 Nawabganj 0.7 0.4 1.3 0.9 0.7 

Dinajpur 1.4 -1.6 3.9 1.1 1.4 Netrakona -5.7 -4.5 -7.5 1.1 -5.3 

Faridpur -3.0 -6.9 2.4 1.1 -2.3 Nilphamari 0.1 -4.6 14.2 1.1 0.1 

Feni -1.1 -0.1 1.2 1.4 0.0 Noakhali -2.2 1.2 3.5 1.2 0.3 

Gaibandha 0.0 -2.5 -2.5 1.4 -0.5 Pabna 1.6 -1.2 2 1.3 1.3 

Gazipur -3.3 6.3 5.4 0.6 0.8 Panchagarh 1.5 -4.5 5.4 1.0 1.2 

Gopalganj -2.8 -2 -3.1 1.4 -2.3 Patuakhali -2.2 -0.6 0.2 1.1 -1.0 

Habiganj 0.7 -5.2 0.8 1.2 0.2 Pirojpur -1.5 0.3 -2.3 1.6 -1.1 

Jamalpur 0.0 1.4 -1.4 1.2 0.2 Rajbari -3.8 -1.7 -3.7 1.1 -3.0 

Jessore -0.9 -2.6 2.3 1.0 -0.5 Rajshahi 1.1 3.3 0.2 0.9 1.2 

Jhalokati -2.3 0.4 3.7 1.6 0 Rangamati -18.3 -1.0 -3.6 0.6 -10.1 

Jhenaidaha -0.1 -0.2 4.5 1.1 0.4 Rangpur -0.2 -2.6 2.0 1.1 -0.3 

Joypurhat 2.8 4.9 8.4 1.3 3.6 Satkhira 1.5 -4.5 -1.9 1.1 -0.2 

Khagrachhari 6.7 1.9 n.a. -0.1 6 Shariatpur -3.3 -0.6 0.5 1.2 -1.9 

Khulna 0.7 0.2 1.0 1.0 0.9 Sherpur 0.0 -2.3 -5.7 1.3 -0.7 

Kishoreganj 11.0 -1.0 -4.5 1.3 6.5 Sirajganj 1.3 -0.6 6.4 1.0 1.6 

Kurigram -0.7 -1.2 -1.4 1.4 -0.8 Sunamganj 0.9 -6.5 7.9 1.1 1.3 

Kushtia -8.2 -0.5 1.9 1.1 -5.2 Sylhet 0.1 -5.1 -3.5 1.1 -1.2 

Lakshmipur -2.1 0.1 -7.2 1.3 -3.8 Tangail 0.1 -1.5 3.9 1.4 0.2 

Lalmonirhat -0.4 -4.8 -3.3 1.1 -1.3 Thakurgaon 0.8 -4.2 5.2 0.9 0.6 

BANGLADESH -0.4 -0.9 -0.4 1.1 -0.3 

Source: Author’s calculation, based on data collected from BBS.

Table 26: Determinant of Income Equation 

Variables/Statistics Income equation 

1 2 

Constant 

-68.674 

(38.402) 

-75.188 

(50.173) 

HPI 1995 

-0.342 

(0.857) 

-0.459 

(0.983) 

Per Capita GDP (1995-96) 

1.161*** 

(0.036) 

1.175*** 

(0.042) 

GDP Growth Rate 

36.225*** 

(2.484) 

35.407*** 

(2.601) 

Holding With No Land as % of Total Holdings 

-1.867** 

(0.713) 

-1.883** 

(0.760) 

Road (Dummy) 

2.160 

(7.732) 

2.994 

(8.103) 

Low Flood Prone 

7.732 

(16.271) 

Flood Prone 

15.240 

(14.060) 

Drought Prone 

12.925 

(15.717) 

Tidal Surge 

2.601 

(16.206) 

Mixed 

9.079 

(19.501) 

Adjusted R 2 0.961 0.959 

F-Value 309.67*** 150.18*** 

Note: Three stars (***), two stars (**) and one star (*) indicate significant at 1, 5 and 10 percent respectively 

III.2 Income Inequality 

Income inequality situation deteriorated during 1995 and 2005 (Table 27). Income inequality, 

measured through Gini coefficient, has increased from 0.432 in 1995/96 to 0.451 in 2000 and 

then increased further to 0.467 in 2005. In case of income of rural households, income inequality 

has increased from 0.385 in 1995/96 to 0.393 in 2000 and 0.428 in 2005. On the other hand, 

income inequality has increased from 0.444 in 1995/96 to 0.497 in 2000 and then stagnated. 

Share of bottom 20% income group increased from 5.71 percent in 1995/96 to 6.17 percent in 

2000 and then declined to 5.26 percent in 2005. Share of bottom 20 percent rural population to 

total income has increased from 6.49 percent in 1995/96 to 7.11 percent in 2000 and then 

declined to 5.88 percent in 2005. In case of bottom 20 percent urban population, their share on 

total income has decreased from 5.12 percent in 1995/96 to 5.09 percent in 2000 and then to 4.82 

in 2005. 


38

Table 27: Percentage share of income of households by decile group and Gini Co-efficient 

Household 

income group 

1995-96 2000 2005 

Total Rural Urban Total Rural Urban Total Rural Urban 

National 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 

Lower 5% 0.88 1.00 0.74 0.93 1.07 0.79 0.77 0.88 0.67 

Decile-1 2.24 2.56 1.92 2.41 2.80 2.02 2.00 2.25 1.80 

Decile-2 3.47 3.93 3.20 3.76 4.31 3.07 3.26 3.63 3.02 

Decile-3 4.46 4.97 4.06 4.57 5.25 3.84 4.10 4.54 3.87 

Decile-4 5.37 5.97 4.98 5.22 5.95 4.68 5.00 5.42 4.61 

Decile-5 6.35 6.98 5.97 6.10 6.48 5.60 5.96 6.43 5.66 

Decile-6 7.53 8.16 7.20 7.09 7.88 6.74 7.17 7.63 6.78 

Decile-7 9.15 9.75 8.98 8.45 9.09 8.24 8.73 9.27 8.53 

Decile-8 11.35 11.87 11.35 10.39 10.97 10.46 11.06 11.49 10.18 

Decile-9 15.40 15.58 16.29 14.00 14.09 14.04 15.07 15.43 14.48 

Decile-10 34.68 30.23 36.05 38.01 32.81 41.32 37.64 33.92 41.08 

Top 5% 23.62 19.73 24.30 28.34 23.52 31.32 29.93 23.03 30.37 

Income Gini 

Co-efficient 

0.432 0.385 0.444 0.451 0.393 0.497 0.467 0.428 0.497 

Source: Report of the Household Income and Expenditure Survey 2005. 

Measuring income inequality among different regions is important. In this study, inequality in 

per capita income and their sources were measured through the decomposition of the Gini Index 

as proposed by Lerman and Yitzhaki (1985) by income sources. It is based on the covariance 

formula of the Gini Index. Assuming an income distribution and m different income sources (e.g. 

agricultural income, income from service, income from industry, etc.), Gini Index may be written 

as equation (1): 

m 

2 

(1) G = Cov( 

y, 

F( 

y)) 

= ∑ y 

k = 

2 

Cov( 

yk 

, F( 

y)) 

y 


1 

Using equation 1, the Gini coefficients were calculated by using the covariance between the 

income sources (agriculture, industry and service) and the cumulative distribution function of 

total income. Thus, inequality in per capita income was decomposed by income sources. 

39

Inequality in per capita income sources (agriculture, industry, service) across different districts 

was also measured through the Theil Index, as in equation (2). In particular, for m income 

sources, the following formula applies: 

(2) T = ∑ ∑ 

Where T is Theil Index, 

k = 1 i= 

1 

k 

⎛ y ⎞ i ⎛ yi 

⎞ 

⎜ ⎟ 

⎜ ⎟ 

ln ⎜ 

⎟ 

⎝ y ⎠ ⎝ y ⎠ 


m 

1 

n 

n 

k 

y i is the contribution of the income source k. and y, y is the average 

level of income. Summing all contributions to inequality by m income sources gives the total 

Theil Index. 

Following Goesling (2001), we have also estimated income inequality between- and within- 

district components of income inequality in Bangladesh using the Theil index. For this purpose, 

equation (3) and (5) was used. In these equations, j is an index of the districts of Bangladesh, p j 

is the jth district’s share of Bangladesh’s total population (i.e., p j = population j / Bangladesh 

total, so ? j p j =1), y j is the jth districts share of Bangladesh’s (GDP) income (? y j =1), and ln 

refers to the natural logarithm. For the Theil index: 

(3) Theil = ∑ y ln( y j / p j ) + ∑ 

j j y 

j jT 

j 

Where T j is the value of the Theil index applied to the within-district income distribution of 

district j. The first term on the right hand side of the equation is the between-district component. 

The second term, a weighted average of the income inequality in district’s income distributions, 

is the within-district component. 

Equation (3) shows how the decomposition of Bangladesh’s total income inequality into additive 

between- and within-district components is similar to a classic analysis of variance problem, 

where the total variance in some outcome variable is divided into the sum of weighted between- 

and within components. Here it is total inequality (not a variance) divided into between- and 

within group components, with districts as groups. 

40

Values for the Theil index applied to district level income distributions (i.e., the values for T in 

equation 3) can be computed using estimates of shares of different sources of income such as 

agriculture, industry, service): 

∑ 

(4) T = y ln( 3y 

) 

j 

q 

qj 


qj 

where q is an index of share of three income sources (agriculture, industry, service) (q = 1,2,3) 

within each district, j, and y, is the q th sources share of the j th districts total income. Substituting 

equation (4) into equation (3) estimates the two additive components of Bangladesh’s income 

inequality may directly be measured from the shares of the income sources: 

(5) = ∑ y j ln( y j / p j ) + ∑ y j∑ 

Theil y ln( 3y 

) 

j j q qj qj 

In equation (5), the first term on the right-hand side is the between-district component, and the 

second term is the within-district component, a weighted average (weights are income shares) of 

income inequality within individual districts. 

Decomposition of per capita income inequality among districts of Bangladesh in presented in 

Table 28 and Figure 1. Total inequality among districts was declining between 1995/96 and 

1999/00. After that it started to increase. Contribution of per capita agricultural income 

inequality to the total income inequality should a general decline until 1999/00 and rising since 

then. Inequality arising from industrial income also registered 

41

Table 28: Decomposition of Per Capita Income Inequality among Districts of Bangladesh: 

1995/96-2005/06. 

Year Agriculture Industry Service Total 

Gini Index 

1995-96 0.010 0.062 0.057 0.130 

1996-97 0.008 0.055 0.056 0.120 

1997-98 0.013 0.058 0.048 0.119 

1998-99 0.008 0.053 0.054 0.115 

1999-00 0.008 0.051 0.054 0.113 

2000-01 0.014 0.055 0.046 0.115 

2001-02 0.013 0.058 0.048 0.119 

2002-03 0.012 0.059 0.051 0.121 

2003-04 0.008 0.060 0.052 0.120 

2004-05 0.018 0.059 0.055 0.132 

2005-06 0.012 0.064 0.056 0.132 

Source: Own estimate. 

Gini Ratio 

Figure1. 

0.140 

0.120 

0.100 

0.080 

0.060 

0.040 

0.020 

Trends in Income inequality among different districts of Bangladesh: 1995/96-2005/06 

0.000 

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 



Agriculture Industry Service 

Year 

42

Estimates of the between and within district components of income inequality in Bangladesh 

during 1995/96 and 2005/06 is reported in Table 29. Estimates of the Theil Index revealed that 

inequality in per capita income among districts was declining until 2001/02 and started to 

increase again since 2001/02. About one third of the total inequality in per capita income may be 

attributed to the between district component, but two thirds of the income inequality depends on 

the within district income inequality. Implication of this finding is that reduction of per capita 

income inequality across districts will depend to a large extent on the programme undertaken to 

reduce income inequality with in the district. We all know that northern districts have more 

unequal distribution of productive assets such as land than in other districts of Bangladesh. 

Therefore, reduction in per capita income among northern districts and other districts of 

Bangladesh would require allocation for development projects so that less fortunate can 

effectively take advantage of those. The issue of access to new productive assets are also 

important to this end. 

Table 29: Estimate of the between and within district components of income inequality in 

Bangladesh: 1995/96-2005/06. 

District Between- 

District 

Inequality 

Within District 

Inequality 


Total inequality % of total inequality 

attributable to the between 

district component 

Theil Index 

1995-96 0.071 0.137 0.208 34 

1996-97 0.069 0.134 0.203 34 

1997-98 0.070 0.133 0.203 35 

1998-99 0.063 0.132 0.195 32 

1999-00 0.060 0.132 0.193 31 

2000-01 0.054 0.132 0.187 29 

2001-02 0.058 0.137 0.195 30 

2002-03 0.062 0.145 0.207 30 

2003-04 0.064 0.148 0.212 30 

2004-05 0.070 0.152 0.222 31 

2005-06 0.075 0.154 0.229 33 


43

0.550 

0.500 

0.450 

0.400 

0.350 

0.300 

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 

Figure 2. Ratio of between-district to with-in district income inequality: 1995/96-2005/06. 

Figure 2 shows that there is a shift in source of inequality in Bangladesh. Prior to 2000/01, 

between-district component was here important but after that within-district component has 

received greater importance. 


44

IV. POVERTY SITUATION 

A conventional way to measure poverty is to establish a poverty line, defined as the threshold 

level of income needed to satisfy basic minimum food and non-food requirements, and determine 

the number of households (people) below that line as a percent of the total households 

(population). This Head-count Index (HCI) is a measure of the incidence of poverty. This 

measure is easily understood by general public and hence is popular with policy makers and 

development practitioners. The limitation of the measure is that it is insensitive to changes in the 

level and distribution of income among the poor. The other measures of poverty commonly used 

to take into account the distribution issue are (a) the Poverty Gap Index and (b) the Squared 

Poverty Gap Index. The Poverty Gap Index measures the average (of both poor and non-poor 

households) of the percent of income gap of the poor households from the poverty line, and is 

used as a measure of intensity of poverty. It measures the percent of total income needed to be 

transferred from the non-poor to poor households to lift the poor above the poverty line. 

However, if the society is averse to inequality in the distribution of income among the poor, the 

poverty measure must be sensitive to income transfers from the moderate to the extreme poor. It 

means that higher priority must be given to the improvement in the economic conditions of the 

extreme poor compared to the moderate poor. The Squared Poverty Gap Index satisfies this 

condition, and is used as a measure of the severity of poverty. For this study we measured and 

mapped the Head-count Index and the Squared Poverty Gap Index. 

Poverty situation at the national and regional level is reported in Table 30 to Table 33. Incidence 

of poverty (as per upper poverty line) has declined from 56.6 percent in 1991-92 to 40.0 percent 

in 2005. On the other hand poverty incidence (using lower poverty line) has reduced from 41.0 

percent in 1991-92 to 25.1 percent in 2005. In 2005, highest incidence of poverty (according to 

Head Count Ratio) was in the Barisal Division (52.0%) followed by Rajshahi Division (51.2%) 

and Khulna Division (45.7%). On the other hand, Dhaka Division recorded the lowest level of 

poverty incidence followed by Sylhet Division (33.8%) and Chittagong Division (34.0%). 

Poverty Gap (using lower poverty line) in 2005 was 4.6%, which recorded a reduction of 2.9% 

point over the 2000. Poverty Gap (using upper poverty line) in 2005 was 9.0%, which recorded a 

reduction of 3.8% point over the 2000. Chittagong division recorded the lowest poverty gap 

(2.2%) in 2005, compared to 5.7% in 2000. 


45

Table 30: Head Count Rate (CBN) of incidence of poverty 

Residence Upper poverty line Lower poverty line 

2005 2000 1995-96 1991-92 2005 2000 1995-96 1991-92 

National 40.0 48.9 50.1 56.6 25.1 34.3 35.1 41.0 

Rural 43.8 52.3 54.5 58.7 28.6 37.9 39.4 43.7 

Urban 28.4 35.2 27.8 42.7 14.6 20.0 13.7 23.6 

Source: Report of the Household Income and Expenditure Survey 2005 

Table 31: Incidence of poverty (head count rate) by cost of basic needs method and by division 

Poverty line and division 2005 2000 1995-96 

National Rural Urban National Rural Urban National Rural Urban 

1. Using the Lower Poverty Line 

National 25.1 28.6 14.6 34.3 37.9 20.0 35.6 39.8 14.3 

Barisal 35.6 37.2 26.4 34.7 35.9 21.7 43.9 44.8 28.9 

Chittagong 16.1 18.7 8.1 27.5 30.1 17.1 32.4 35.3 12.1 

Dhaka 19.9 26.1 9.6 34.5 43.6 15.8 33.0 41.5 10.8 

Khulna 31.6 32.7 27.8 32.3 34.0 23.0 32.2 33.2 25.8 

Rajshahi 34.5 35.6 28.4 42.7 43.9 34.5 41.6 44.4 19.2 

Sylhet 20.8 22.3 11.0 26.7 26.1 35.2 

2. Using the Upper Poverty Line 

National 40.0 43.8 28.4 48.9 52.3 35.2 53.1 56.7 35.0 

Barisal 52.0 54.1 40.4 53.1 55.1 32.0 59.9 60.6 47.7 

Chittagong 34.0 36.0 27.8 45.7 46.3 44.2 44.9 47.2 29.2 

Dhaka 32.0 39.0 20.2 46.7 55.9 28.2 52.0 58.9 33.6 

Khulna 45.7 46.5 43.2 45.1 46.4 38.5 51.7 51.5 53.3 

Rajshahi 51.2 52.3 45.2 56.7 58.5 44.5 62.2 65.7 33.9 

Sylhet 33.8 36.1 18.6 42.4 41.9 49.6 



46

Table 32: Poverty gap and squared poverty gap by cost of basic needs method (in percent) 

Poverty line and division Poverty gap Squared poverty gap 

National Rural Urban National Rural Urban 

2005 


National 4.6 5.3 2.6 1.3 1.5 0.7 

Barisal 9.1 9.6 6.4 3.3 3.4 2.6 

Chittagong 2.2 2.7 9.0 0.5 0.6 0.2 

Dhaka 3.6 4.9 1.5 1.0 1.4 0.3 

Khulna 6.2 6.3 5.5 1.7 1.7 1.7 

Rajshahi 6.4 6.5 5.5 1.8 1.8 1.6 

Sylhet 3.4 3.7 1.9 0.8 0.8 0.5 


National 9.0 9.8 6.5 2.9 3.1 2.1 

Barisal 15.5 16.3 10.7 6.3 6.6 4.3 

Chittagong 6.3 6.5 5.6 1.7 1.7 1.6 

Dhaka 6.9 8.6 4.0 2.1 2.7 1.1 

Khulna 10.8 10.4 12.3 3.5 3.2 4.6 

Rajshahi 11.9 12.0 11.4 3.8 3.8 3.9 

Sylhet 7.2 7.6 4.5 2.1 2.2 1.5 

2000 


National 7.5 8.3 4.1 2.4 2.6 1.2 

Barisal 6.9 7.0 4.9 1.9 2.0 1.6 

Chittagong 5.7 6.3 3.6 1.7 1.9 1.1 

Dhaka 8.1 10.5 3.0 2.6 3.5 0.8 

Khulna 5.6 5.7 4.5 1.4 1.4 1.3 

Rajshahi 10.2 10.5 7.8 3.5 3.6 2.7 

Sylhet 4.4 4.4 4.5 1.1 1.1 1.2 


National 12.8 13.7 9.1 4.6 4.9 3.3 

Barisal 13.7 14.2 8.3 4.7 4.9 3.1 

Chittagong 11.3 11.3 11.4 3.9 3.9 4.2 

Dhaka 12.9 12.9 6.6 4.7 6.0 2.2 

Khulna 1.0 10.0 10.3 3.0 2.9 3.7 

Rajshahi 16.2 16.2 13.6 6.2 6.3 5.4 

Sylhet 9.2 9.2 12.5 2.8 2.7 4.1 

1995-96 


National 7.9 8.9 2.7 2.6 2.9 0.8 

Barisal 10.2 10.4 7.6 3.4 3.4 2.6 

Chittagong 6.1 6.7 1.7 1.7 1.9 0.4 

Dhaka 8.0 10.2 2.0 2.8 3.6 0.5 

Khulna 6.5 6.5 6.2 2.0 1.9 2.2 

Rajshahi 9.8 10.6 3.7 3.4 3.7 1.0 


National 14.4 15.4 9.2 5.4 5.7 3.4 

Barisal 18.0 18.1 16.7 7.1 7.1 7.7 

Chittagong 10.5 11.2 5.9 3.4 3.6 1.7 

Dhaka 14.9 17.1 8.9 5.8 6.7 3.4 

Khulna 12.4 11.7 16.6 4.3 3.9 7.0 

Rajshahi 17.9 19.1 8.5 7.0 7.6 2.9 



47

An analysis of poverty incidence, measured through Head Count Ratio, in different regions (old 

districts) revealed that poverty has increased in 11 regions (Bogra, Dhaka, Jamalpur, Jessore, 

Khulna, Noakhali, Pabna, Patuakhali, Rajshahi, Rangamati, Tangail) and decreased in nine 

regions (Barisal, Chittagong, Comilla, Dinajpur, Faridpur, Kushtia, Mymensingh, Rangpur, 

Sylhet) between 2005 and 1995/96 (Table 33). 

Table 33: Poverty incidence (Head Count Ratio) in Different Regions (Old Districts) in 

Bangladesh: 1995-2005. 

Regions 

(Old districts) 

1995 1999 2005 Poverty incidence 

in 2005, 

compared 

to 1995 

Total Urban Rural Total Urban Rural Total 

Barisal 0.648 0.617 0.654 0.500 0.445 0.510 0.440 Decreased 

Bogra 0.324 0.164 0.339 0.459 0.443 0.460 0.432 Increased 

Chittagong 0.367 0.468 0.293 0.418 0.397 0.434 0.315 Decreased 

Comilla 0.546 0.479 0.555 0.431 0.301 0.449 0.285 Decreased 

Dhaka 0.211 0.152 0.300 0.433 0.433 0.434 0.214 Increased 

Dinajpur 0.623 0.650 0.620 0.390 0.455 0.382 0.533 Decreased 

Faridpur 0.601 0.524 0.611 0.526 0.508 0.528 0.402 Decreased 

Jamalpur 0.603 0.789 0.564 0.499 0.503 0.498 0.626 Increased 

Jessore 0.417 0.216 0.450 0.425 0.362 0.435 0.511 Increased 

Khulna 0.409 0.469 0.386 0.421 0.496 0.392 0.551 Increased 

Kishoreganj n.a. n.a. n.a. 0.393 0.396 0.392 0.300 

Kushtia 0.399 0.554 0.372 0.348 0.436 0.333 0.245 Decreased 

Mymensingh 0.613 0.547 0.622 0.549 0.450 0.563 0.479 Decreased 

Noakhali 0.176 0.183 0.175 0.461 0.361 0.475 0.351 Increased 

Pabna 0.474 0.897 0.396 0.468 0.464 0.469 0.533 Increased 

Patuakhali 0.531 0.185 0.563 0.406 0.522 0.395 0.692 Increased 

Rajshahi 0.411 0.625 0.359 0.417 0.439 0.412 0.446 Increased 

Rangpur 0.708 0.670 0.713 0.519 0.517 0.519 0.574 Decreased 

Sylhet 0.526 0.484 0.532 0.400 0.354 0.406 0.338 Decreased 

Tangail 0.294 0.353 0.285 0.465 0.576 0.449 0.372 Increased 

Chittagong H.T. n.a. n.a. n.a. 0.437 0.484 0.415 n.a. 

Bandarban n.a. n.a. 0.090 n.a. n.a. n.a. 0.607 

Khagrachhari n.a. n.a. 0.498 n.a. n.a. n.a. 0.332 

Rangamati 0.314 0.441 0.248 n.a. n.a. n.a. 0.503 Increased 

Note: n.a. Indicates data not available. 

Source: Bangladesh Bureau of Statistics. 


48

Association between GDP growth, agricultural growth and poverty reduction during 1995/96 and 

2005/06 is reported in Table 34 and 35. From this, one can not conclude any strong relationship 

between growth and poverty reduction. 

Table 34: Association between Agricultural GDP Growth and Changes in Poverty Situation 

(Change in 2005, Compared to 1995) 

Agriculture GDP Growth Type Changes in Poverty (Head-Count Ratio) in 2005/06, compared to 

1995/96 

Increase Decrease 

High Growth (>5% annual compound rate 

of growth) 

Moderate Growth 

Bogra 

(3-5% annual compound rate of growth) 

Slow Growth (up to 3% annual compound 

rate of growth) 

Negative Growth (>0 to -3% annual 

compound rate of growth) 

Extremely Negative (>-3% annual 



Noakhali, Patuakhali, Jessore, Tangail, 

Dhaka, Jamalpur, Khulna, Pabna, 

Rajshahi 

Rangamati 

Barisal, Chittagong, 

Comilla, Dinajpur, 

Rangpur, Sylhet 

Faridpur, Mymensingh, 

Kushtia 

Table 35: Association between GDP Growth and Changes in Poverty Situation (Change in 2005, 

Compared to 1995) 

GDP Growth Type Changes in Poverty (Head-Count Ratio) in 2005/06, compared to 1995/96 

Increase Decrease 

High Growth (>5% annual compound 

rate of growth) 

Pabna 

Moderate Growth 

Patuakhali, Noakhali, Jessore, Barisal, Chittagong, Comilla, 

(3-5% annual compound rate of growth) Khulna, Jamalpur, Tangail, Dhaka, Dinajpur, Faridpur, Kushtia, Rangpur, 

Rajshahi, Bogra 

Sylhet, 

Slow Growth (up to 3% annual 


Mymensingh 

Negative Growth (>0 to -3% annual 


Extremely Negative (>-3% annual 


Rangamati 

49

It is well recognised that human poverty has long-term and intergenerational impact on 

inequality. Human Poverty Index (HPI) for all the 64 districts constructed by Sen and Hulme 

(2006) for 1995 and 2000 is reported in Table 36. Human Poverty in all the districts was reduced 

between 1995 and 2000. There was variation in terms of decrease human poverty. High level of 

annual decrease in human poverty (more than 3%) was observed in seven districts (Bandarban, 

Barguna, Comilla, Thakurgaon, Nilphamari, Pirojpur and Rangamati). 

Table 36: Human Poverty Index. 

DISTRICTS HPI 1995 HPI 2000 Annual DISTRICTS HPI HPI Annual 

Change 

1995 2000 Change 

Bagerhat 32.58 29.72 -1.76 Madaripur 38.59 34.64 -2.05 

Bandarban 51.60 39.77 -4.59 Magura 36.34 33.04 -1.81 

Barguna 33.79 28.43 -3.17 Manikganj 38.93 35.44 -1.79 


Bhola 37.48 36.32 -0.62 Meherpur 36.91 36.01 -0.49 

Bogra 37.72 32.75 -2.64 Munshiganj 29.68 29.07 -0.41 

Brahamanbaria 39.26 37.65 -0.82 Mymensingh 40.30 34.70 -2.78 

Chandpur 33.28 29.76 -2.11 Naogaon 36.91 32.32 -2.48 

Chittagong 32.29 29.21 -1.91 Narail 32.41 31.26 -0.71 

Chuadanga 34.02 32.11 -1.12 Narayanganj 31.58 28.45 -1.98 

Comilla 31.88 26.72 -3.24 Narsingdi 37.93 35.25 -1.42 

Cox's Bazar 38.68 38.44 -0.13 Natore 36.02 34.42 -0.89 

Dhaka 26.87 26.51 -0.27 Nawabganj 41.68 39.66 -0.97 

Dinajpur 36.24 33.31 -1.62 Netrakona 39.04 37.06 -1.01 

Faridpur 35.26 34.59 -0.38 Nilphamari 46.86 38.50 -3.57 

Feni 30.83 28.15 -1.74 Noakhali 36.33 33.05 -1.80 

Gaibandha 39.95 35.08 -2.44 Pabna 40.36 36.11 -2.11 

Gazipur 34.93 32.49 -1.40 Panchagarh 38.71 35.03 -1.90 

Gopalganj 32.51 29.77 -1.69 Patuakhali 35.76 30.56 -2.91 

Habiganj 37.23 34.45 -1.49 Pirojpur 31.16 25.82 -3.42 

Jamalpur 51.06 41.87 -3.60 Rajbari 43.75 38.03 -2.61 

Jessore 30.77 28.20 -1.67 Rajshahi 35.98 33.57 -1.34 

Jhalokati 31.54 25.40 -3.89 Rangamati 46.24 35.74 -4.54 

Jhenaidaha 35.74 32.37 -1.89 Rangpur 41.70 38.26 -1.65 

Joypurhat 37.23 35.70 -0.82 Satkhira 35.53 31.74 -2.13 

Khagrachhari 43.86 37.58 -2.87 Shariatpur 42.28 36.76 -2.61 

Khulna 32.51 27.95 -2.81 Sherpur 45.15 42.98 -0.96 

Kishoreganj 39.35 35.59 -1.91 Sirajganj 42.59 38.83 -1.77 

Kurigram 43.14 39.42 -1.73 Sunamganj 43.01 39.44 -1.66 

Kushtia 36.79 35.78 -0.55 Sylhet 39.11 35.08 -2.06 

Lakshmipur 34.80 32.39 -1.39 Tangail 39.33 32.48 -3.48 

Lalmonirhat 40.67 35.63 -2.48 Thakurgaon 

BANGLADESH 

40.32 35.87 -2.21 

Source: Sen and Hulme (2006). 


50

Growth, Income Inequality and Poverty Trends in Bangladesh - UNDP

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