GDP Impact & Economic Analysis of Dhaka Chittagong Expressway: The Case of Bangladesh


Shamema Akter

Journal: Bangladesh Journal of Political Economy

(pp: 521-550) | Doi No: http:/



This analysis has been undertaken to assess the economic viability of the project. Dhaka Chittagong National Highway  (NH1)  is  considered  to  be  the most important National Highway and lifeline of trade in Bangladesh    and carries port traffic to Dhaka and others location in the country. Dhaka Chittagong Expressway (DCE) is a 199.3 km long 4 lane new expressway, connecting Dhaka with Comilla, Feni and Chittagong districts of Bangladesh. The traffic forecast emanating from the model results were then used in the economic analysis**. The economic analysis compares the costs and benefits of investing in the at-grade and elevated option, as compared with the ‘without project’ case where National Highway1 (NH1) remains the only road on the Dhaka–Chittagong corridor. All costs and benefits are expressed in economic terms, the actual resource costs to the Bangladesh economy.

The economic analysis of the expressway project based on traffic projection and cost estimates of the routes has carried out. Dhaka Chittagong Expressway is the sole viable alternative from the economic point of view. Its EIRR is 20.3%, and NPV @ 12% is USD 2,243.4 million, largely driven by VOC saving as well as benefit and cost ratio is 2.26 (benefit: cost ratios>1). It was found that DCE is a robust project, as only very substantial cost increases (126%) or traffic reductions (56%) would affect the overall viability of the project.

Also, the objective of the study is to explore the relationship between the DCE and GDP. For this purpose, time series data from the World Bank (WB) and DCE project data are used for analyzing bivariate linear regression using SPSS. Thus, I have economic researched of DCE Project and from my research emphasizes that Bangladesh GDP growth will be increase for this project and this amount by 0.60% i.e. GDP would be 8.75% pa with the Project over the 30 years of the Expressway of Dhaka Chittagong Corridor. This paper focuses to find out what will be impact of DCE on Bangladesh’s economy specially on economic growth, and how Bangladesh will be benefited from this project, besides what steps Bangladesh government should be take it meaningful. It gives the more economic benefit with potential for intellectual transportation System and also gives the positive impact it will have on their economic growth.

Also, the expressway can be connected Chittagong  and  Cox’s  Bazar with Kolkata, Myanmar and China in the future and may create an economic corridor among Bangladesh-China-India-Myanmar (BCIM) countries and there is enormous economic potential of Chittagong District with an exclusive advantage of ports, roads and railways. Yet, Bangladesh is part of the proposed BCIM corridor. And, BCIM corridor is included with Belt and Road Initiative (BRI). Besides, Bangladesh has the geographical boost to connect itself to neighboring countries including China, the Association of Southeast Asian Nations (ASEAN), central Asia and west Asia and beyond using multimodal connectivity through road-rail-air and shipping. This DCE project is absolutely relative with the BCIM economic corridor. In addition, Dhaka-Chittagong Highway, which is part of the Asian Highway (AH) network, by widening it to four lanes and building the Dhaka-Chittagong Expressway.

The potential of the project area for economic growth will be increased and poverty reduction in the Bangladesh. No adverse socioeconomic effects on employment and income trends.

First time I have made a presentation of this paper on 49th ETC-2021 of AET. Now I am specifically requesting for publication in the journal.



Md. Anishur Rahman


+88 02 222225996


Share On Social Media

Others Articles

Front Matter



Impact of FDI on Exports and Employment in Bangladesh


by Md. Mamun Miah, Shapan Chandra Majumder

Single-Digit Interest Rate and Future of Bangladesh Economy: A Brief Analysis


by Lizon Mia, Ankan Chandra Dey, Md. Tanjil Hossain

Bangladesh and the World: In 2050 and beyond


by Md. Anisur Rahman

Women Entrepreneurs of Small and Medium Enterprises: Failures and Remedies


by Tasnim Sultana, Bidduth Kanti Nath, Sujan Kanti Biswas

Evaluating the Energy (Power) Security in Bangladesh


by Mohammad Mohidul Islam

Predetermined History of War Economy


by Md. Bayazid Sarker

Determinants of SME Business in Mymensingh


by Md. Tanjil Hossain

  • Address: 4/C, Eskaton Garden Road, Dhaka-1000, Bangladesh
  • Mobile: +8801716418500
  • Telephone: +88 02 222225996
  • E-mail:
  • Working Days/Hours: Saturday - Wednesday 10:00am to 6:00pm
    Thursday, Friday and Government Holidays Office Remain Closed