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
- EP ID EP2172
- DOI -
- Views 302
- Downloads 32
FINANCIAL DEVELOPMENT AND INVESTMENT AMOUNT NEXUS: A CASE STUDY OF TURKEY
The paper examines the relationship between financial development and investment amount in Turkey over the period of 1998:01-2015:02 by using Toda-Yamamoto method. Banking sector and stock market measures of financial de...
INVESTIGATING THE ROLE OF OIL PRICES IN THE CONVENTIONAL EKC MODEL: EVIDENCE FROM TURKEY
Being a developing country E-banking opened up tremendous opportunity to the financial sector and economic development of Bangladesh. This paper studies prospects of e-banking in Bangladesh, considering the performance o...
THE IMPACT OF CORPORATE GOVERNANCE VARIABLES ON NON-PERFORMING LOANS OF NIGERIAN DEPOSIT MONEY BANKS
The objective of the study was to examine the impact of Corporate Governance variables of Board size(BS), Board Composition(BC), Composition of Audit Committee(CAC) and power separation(PS) on Non-performing Loans of Nig...
ECONOMIC GROWTH OF SELECTED SOUTH ASIAN COUNTRIES: DOES INSTITUTION MATTER?
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...
Determinants of Foreign Direct Investment in Developing Countries: A Panel Data Analysis
The aim of this paper is to explore, by estimating a panel data econometric model, thedetermining factors of foreign direct investment (FDI) inflows in developing countriesover the period of 1990-2007. The study is based...