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Peoples Income and Consumption Pattern during & before COVID-19 Pandemic: A Study in the Northern Areas of Bangladesh

Document Type : Original Research

Authors

Department of Economics, Islamic University Bangladesh, Kushtia, Bangladesh

Abstract

The SARS COV2 pandemic hits the life and livelihoods of millions and consequently slows down the world economy. The pandemic hits hard the specific social groups due to travel restrictions/bans and other regulations that affect their income and consumption patterns. The goal of this paper is to find out whether the pandemic has any effect on consumption and income patterns among consumers in rural settings. To implement this study, structured questionnaires were sent to respondents and collect data from 180 samples living in rural areas of four different administrative districts in Bangladesh such as Rajshahi, Bogura, Naogaon, and Natore. Using paired sample T-test (parametric) and Wilcoxon signed ranked test (nonparametric) test found that pandemics had a significant effect on the pattern of consumption and income in the northern area of Bangladesh. While the Keynesian method of income determination shows that the MPC before the COVID-19 pandemic was 0.31 and during it was 0.37. This shows that consumers would like to consume at a higher level compared to them before the COVID-19 pandemic. Overall, the study revealed that though the pandemic significantly affect consumers’ income to reduce, consumption levels inclines fuelled by the fear of panic buying during the pandemic. Government should have preparedness to provide essential goods during any natural disasters or pandemic-like events.

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©2022 The author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.

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International Journal of Management, Accounting and Economics
Volume 9, Issue 10 - Serial Number 99
October 2022
Pages 653-668
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