IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v3y2011i2p115-121.html
   My bibliography  Save this article

Empirical Analysis of Determinants of Economic Growth: Evidence from SAARC Countries

Author

Listed:
  • Muhammad Akram
  • Syed Shabihul Hassan
  • Muhammad Farhan
  • Hassan Mobeen Alam

Abstract

This study investigates the factors that determine and enhance economic growth. The factors to determine the economic growth of South Asian Association for Regional Cooperation (SAARC) countries are foreign direct investment, total debt, gross domestic investment and inflation. Simple ordinary least square is applied to analyze the determinates of economic growth with the help of panel data for 39 years with annual frequency from 1971 to 2009. The economic growth may gain boost by the factors not only by these but also many others. In this study foreign direct investment and inflation are found having inverse relationship with economic growth while gross domestic investment and total debt are found positively associated with economic growth. This study may prove useful contribution for policy making for South Asian countries.

Suggested Citation

  • Muhammad Akram & Syed Shabihul Hassan & Muhammad Farhan & Hassan Mobeen Alam, 2011. "Empirical Analysis of Determinants of Economic Growth: Evidence from SAARC Countries," Journal of Economics and Behavioral Studies, AMH International, vol. 3(2), pages 115-121.
    • Handle: RePEc:rnd:arjebs:v:3:y:2011:i:2:p:115-121
    DOI: 10.22610/jebs.v3i2.261
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/261/261
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/261
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v3i2.261?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chen, Baizhu & Feng, Yi, 2000. "Determinants of economic growth in China: Private enterprise, education, and openness," China Economic Review, Elsevier, vol. 11(1), pages 1-15.
    2. Jayaraman, T.K. & Lau, Evan, 2009. "Does external debt lead to economic growth in Pacific island countries," Journal of Policy Modeling, Elsevier, vol. 31(2), pages 272-288.
    3. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    4. Anaman, Kwabena A., 2004. "Determinants of economic growth in Brunei Darussalam," Journal of Asian Economics, Elsevier, vol. 15(4), pages 777-796, August.
    5. Hrushikesh Mallick, 2008. "Inflation and growth dynamics: the Indian experience," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(3), pages 163-172.
    6. Faiza Amjad & Naheed Zia Khan, 2004. "External Determinants of Growth and Growth Projections: SAARC and Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 737-755.
    7. Sajid Anwar & Lan Phi Nguyen, 2010. "Foreign direct investment and economic growth in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 16(1-2), pages 183-202, April.
    8. Måns Söderbom & Francis Teal, 2001. "Trade and human capital as determinants of growth," CSAE Working Paper Series 2001-10, Centre for the Study of African Economies, University of Oxford.
    9. repec:fth:oxesaf:2001-10 is not listed on IDEAS
    10. Hrushikesh Mallick, 2008. "Inflation and growth dynamics: the Indian experience," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 11(3), pages 163-172.
    11. Francis Teal & Måns Söderbom, 2001. "Trade and Human Capital as Determinants of Growth," Economics Series Working Papers WPS/2001-10, University of Oxford, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moaniba, Igam M. & Su, Hsin-Ning & Lee, Pei-Chun, 2019. "On the drivers of innovation: Does the co-evolution of technological diversification and international collaboration matter?," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    2. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    3. Marcel Fafchamps & Mans Söderbom & Najy Benhassine, 2009. "Wage Gaps and Job Sorting in African Manufacturing," Journal of African Economies, Centre for the Study of African Economies, vol. 18(5), pages 824-868, November.
    4. Thi-Nham Le & Thanh-Tuan Dang, 2022. "An Integrated Approach for Evaluating the Efficiency of FDI Attractiveness: Evidence from Vietnamese Provincial Data from 2012 to 2022," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    5. Tan, Ruipeng & Xu, Mengmeng & Qiao, Gang & Wu, Huaqing, 2023. "FDI, financial market development and nonlinearities of energy and environmental efficiency in China: Evidence from both parametric and nonparametric models," Energy Economics, Elsevier, vol. 119(C).
    6. Marcel Fafchampsm & Måns Söderbom, 2006. "Wages and Labor Management in African Manufacturing," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    7. Audi, Marc & Ali, Amjad & Fayad Hamadeh, Hani, 2022. "Nexus among innovations, financial development and economic growth in developing countries," MPRA Paper 115220, University Library of Munich, Germany.
    8. Ali, Amjad, 2022. "Foreign Debt, Financial Stability, Exchange Rate Volatility and Economic Growth in South Asian Countries," MPRA Paper 116328, University Library of Munich, Germany, revised 2022.
    9. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.
    10. Sin-Yu Ho, 2018. "Analysing the sources of growth in an emerging market economy: the Thailand experience," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 10(4), pages 340-359.
    11. Rajesh Sharma & Pradeep Kautish & D. Suresh Kumar, 2018. "Impact of Selected Macroeconomic Determinants on Economic Growth in India: An Empirical Study," Vision, , vol. 22(4), pages 405-415, December.
    12. Li, Yarui & Woodard, Joshua D. & Leatham, David J., 2013. "Causality among Foreign Direct Investment and Economic Growth: A Directed Acyclic Graph Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(4), pages 617-637, November.
    13. Omar G. Aziz, 2022. "FDI inflows and economic growth in Arab region: The institutional quality channel," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1009-1024, January.
    14. Chirwa, Themba G & Odhiambo, Nicholas M., 2018. "Electricity consumption and economic growth: New evidence from twelve countries," Working Papers 23508, University of South Africa, Department of Economics.
    15. Chirwa Themba G. & Odhiambo Nicholas M., 2016. "Macroeconomic Determinants of Economic Growth: A Review of International Literature," South East European Journal of Economics and Business, Sciendo, vol. 11(2), pages 33-47, December.
    16. Muhammad Shahbaz & Miroslav Mateev & Salah Abosedra & Muhammad Ali Nasir & Zhilun Jiao, 2021. "Determinants of FDI in France: Role of transport infrastructure, education, financial development and energy consumption," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 1351-1374, January.
    17. Gennady Shkliarevsky, 2023. "Inflation and Value Creation: An Economic and Philosophic Investigation," Papers 2301.03063, arXiv.org.
    18. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    19. Amir Iqbal & Xuan Tang & Samma Faiz Rasool, 2023. "Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2234-2263, March.
    20. Justin Paul & Gurmeet Singh, 2017. "The 45 years of foreign direct investment research: Approaches, advances and analytical areas," The World Economy, Wiley Blackwell, vol. 40(11), pages 2512-2527, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:3:y:2011:i:2:p:115-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.