Page 44 - Azerbaijan State University of Economics

Hashim Al-Ali: An integrated macro-fiscal forecasting model and its application for
the Bangladesh economy

Hence, assessing and measuring their impacts, using the build-in alternative scenarios implication
of the macro-fiscal model.

Table -3- : The Main Policy Variables and Exogenous Parameters
No. Detail Parameter
1 Incremental Capital-Output Ratio ICOR (k)
2 Rate of Depreciation d
3 Labour-Output Ratio ɩ
4 Sectoral Share in GDP (Agriculture Sectoral Structure) φ 1
5 Sectoral Share in GDP (Industrial Sectoral Structure) φ 2
6 Sectoral Share in GDP (Services Sectoral Structure) φ 3
7 Productivity Growth Rate p
8 Capacity Utilization Rate Ω
9 Growth rate of Labour Supply lѕg
10 Growth Rate of Wages, Salaries & Allowances r wsa
11 Growth Rate Of Expenditure on Goods & Services λ
12 Growth Rate of Annual Devl. Prog. Investment r adp
13 Growth Rate of Non-Annual Devel. Prog. Invest. r nadp
14 Proportion of Energy and Fuel Subsidies to G t pes
15 Growth Rate of Food and Other Subsidies δ os
16 Proportion of Other Govt. Expen. To G t pro gco
17 Natural growth of population r pop
18 Share of domestic debt in total debt p dd
19 Share of external debt in total debt p ed
20 Average interest rate on domestic public borrowing π 1

21 Average interest rate on external public borrowing π 2
22 Change in Stock Propor. To Total Supply ρc
23 Propor. Of BGD Garment Export to the World Garment Trade σ gt
24 Growth Rate of Garment Export r eg
25 Proportion of Import of Services to total commodity Imports λ sp
26 Rate of Value-Added Tax RVAT
27 Proportion of export services to total commodity exports λ es
28 Proportion of Non-Tax Revenue to GDP (X) ω ntr
e
29 Growth Rate of Remittances r
on
30 Growth Rate of Other Net Transfers r
fi
31 Proportion of Net Foreign Invest. Returns δ
32 The New Planned Rate for Value-Added Tax NRVAT
33 Value -Added Tax Proportion to Total Final Demand at yeat t VATFC t

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