Comparative Analysis of Consumption Expenditure and Income Nexus before and after Pandemic: Evidence from a Particular Area of Bangladesh

Abstract

By April 2023 around 762 million confirmed cases and over 6.8 million deaths have been reported globally due to COVID-19 ( WHO ). Huge economic loss took place due to the movement restrictions of production materials and workers. Bangladesh’s GDP growth sharply declines to 6.93 percent in FY20 from a record high of 7.88 percent growth in FY19 ( WDI , World Bank ). Also due to factors like month-long lockdowns, restricted movements, sudden job cuts, the income of people decreased especially for those who belong to informal sectors like day laborers, rickshaw pullers, etc. This decline in income and the uncertainty of working opportunities also impact peoples’ consumption behavior. One upazila has been selected from Bhola district i.e. Daulatkhan, a coastal area where majority of the population is involved in informal sectors. Conducting a primary survey, this paper aims to find out changes in income-consumption pattern before and after pandemic. Using Keynes consumption function, different MPC has been found for different periods, it became even worse among different professions as well. Thus this research suggests to take need base policies instead of a generic one to make vulnerable population’s life secure. Necessary policy recommendation has been proposed along with opening a new dimension of future research.