  The paper examined the impact of agricultural credit on economic growth in
Bangladesh. The annual data of agriculture credit were collected from annual
reports of the Bangladesh Bank and other data were collected from the world
development indicator (WDI) of the World Bank. By employing Johansen
cointegration test and vector error correction model (VECM), the study revealed
that there exists a long run relationship between the variables. The results of
the study showed that agriculture credit had a positive impact on GDP growth in
Bangladesh. The study also found that gross capital formation had a positive,
while inflation had a negative association with economic growth in Bangladesh.
Therefore, the government and policymakers should continue their effort to
increase the volume of agriculture credit to achieve sustainable economic
growth.
