نبذة مختصرة : This paper estimates the relationship between food prices and wages across key sectors and regions in Bangladesh from 2012 to 2024. Using Vector Error Correction Models (VECM) where cointegration exists and Autoregressive Distributed Lag (ARDL) models otherwise, we found that most regions and sectors in Bangladesh are wage-driven in both the retail and wholesale models, except Chattogram and Rangpur in the wholesale model. Under the retail model, we also found faster adjustments to long-run equilibrium than wholesale price models, highlighting the sensitivity of local retail markets to wage trends and cost-of-living pressures. Where no stable long-run relationship is found, no short-term associations emerge. These findings reveal that rising food prices do not automatically lead to wage increases, highlighting significant regional disparities in wage-price transmission. Understanding this heterogeneity is crucial for policymakers aiming to design targeted interventions that protect vulnerable households' real incomes while protecting producers and enhancing food security amid inflationary shocks.
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