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

This 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. The paper apprehends that the current practice of estimating investment leads to its substantial underestimation especially due to the differences in measurement between gross domestic product and gross domestic expenditure which is termed as statistical discrepancy.