Technological improvement and economic growth: Evidence from employment generation in micro, small, and medium-sized enterprises (MSMEs) in Bangladesh

Abstract

The contribution of technological changes to economic growth in Bangladesh through the channel of employment, with a special focus on the Micro, Small, and Medium-sized Enterprises (MSMEs) sector, is explored in this study. It examines how technological progress has helped Micro, Small, and Medium-Sized Enterprises increase productivity, access new markets, and generate new jobs through secondary data from the World Bank and Ministry of Foreign Affairs (MOFA). The analysis underlines the opportunities and challenges MSMEs face in implementing novelties in technology, including infrastructure, financial availability, and technical skills. Correlation between Gross domestic product (GDP) growth and technology adoption is found, meanwhile, the relationship between unemployment rates and technological innovation is found to be negative. While impressive government initiatives exist, a few obstacles exist to the broad diffusion of technologies at all levels, such as insufficient financial access and technological infrastructure. The study provides practical policy recommendations aimed at accelerating Bangladesh’s long-term development objectives, resolving extant barriers, and encouraging technology-driven growth.