ECONOMIC GROWTH OF SELECTED SOUTH ASIAN COUNTRIES: DOES INSTITUTION MATTER?

Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 2

Abstract

In this paper we estimate the proximate determinants of economic growth in four major economies of South Asia with special emphasis on the role of institutions in conjunction with stock of physical capital, human capital and openness (measured as trade as percentage of GDP) as major predictor variables. World Governance indicators are available since 1996; therefore, we run a panel regression using the fixed-effect method of estimation for the period of 1996-2010. We also employ a dynamic panel using System- Generalized Method of Moments (SGMM) to counter the possible endogeneity among the variables and also the weak instrumental problem of earlier Arellano and Bond (1991) dynamic panel model. The two institutional measures, namely, voice and accountability and government effectiveness have appeared to be significant predictors of growth of selected South Asian countries. Our results also support the conventional growth predictors like physical and human capital but the effect of openness on growth surprisingly appears to be negative and significant in the period under study.

Authors and Affiliations

Jayanti Bhattacharjee*| Assistant Professor, Department of Economics, Women’s College, Agartala, Tripura, India, Sushil Kr. Haldar| Associate Professor, Department of Economics, Jadavpur University, Kolkata, India

Keywords

Related Articles

DECISION USEFULNESS APPROACH TO FINANCIAL REPORTING: A CASE FOR MALAYSIAN INLAND REVENUE BOARD

This paper aims at determining whether or not financial reporting of companies in Malaysia provides useful information to Inland Revenue Board for income tax determination. The respondents in this study were staff of the...

REGIONAL INTEGRATION AND FOREIGN INVESTMENT: THE CASE OF ASEAN COUNTRIES

The importance of regional integration in stimulating foreign direct investment cannot be overemphasized. With a special focus on the ASEAN countries, this research paper investigates the role of regional integration in...

Permanent Income Hypothesis, Myopia and Liquidity Constraints: A Case Study of Pakistan

This paper is an attempt to test the Permanent Income Hypothesis (PIH), Myopia and Liquidity Constraints as a case study for Pakistan. The paper also attempts to find out valid reasoning incase the PIH is rejected. Hall...

CEREAL BANK AS A NECESSARY RURAL LIVELIHOOD INSTITUTE IN ARID LAND, MAKOJA VILLAGE, DODOMA-TANZANIA

In 2012, the study was carried at Makoja Village, in Semi-Arid region of Dodoma. The aim of the conducted study was to assess the importance of Cereal Bank to livelihood of farming households. A total of 80 respondents w...

THE ROLE OF PRODUCTIVITY IN ECONOMIC GROWTH AND EQUILIBRIUM

This study reexamines the evidence for the Balassa-Samuelson effect for the 1985-2007 period. Cointegrating relationships between the real exchange rate and productivity, real price of oil and government spending a...

Download PDF file
  • EP ID EP2172
  • DOI -
  • Views 483
  • Downloads 32

How To Cite

Jayanti Bhattacharjee*, Sushil Kr. Haldar (2015). ECONOMIC GROWTH OF SELECTED SOUTH ASIAN COUNTRIES: DOES INSTITUTION MATTER?. Asian Economic and Financial Review, 5(2), 356-370. https://europub.co.uk/articles/-A-2172