Macroeconomic Indicators of Economic Growth using Panel Data: A Study from South Asian Countries

Abstract

Economic development is a most imperative element in figuring out the well-being of the citizens in a country. The present study analyzes the effect of key macroeconomic indicators on the Economic development of South Asian countries. The study intends to scrutinize the long-run and short-run association between Economic development and several macroeconomic variables by using panel data analysis. During ultimate 10 years, a few South Asian countries (SA) had economic instability. The study is aimed to investigate the macroeconomic indicators of some selected SA countries’ economic growth. The static linear panel statistics model had been used for figuring out the consequences of unbiased macroeconomic variables on the gross domestic product (GDP) of SA member countries including Bangladesh, India, Pakistan, and Nepal. While explained variable of examines is analysis is gross domestic product (quantity), the unbiased variables are current account balance general government gross debt, general government revenue, general government total expenditure, inflation (average consumer prices), population, the volume of exports of goods and services, volume of imports of goods and services. The analysis proposed is grounded on a panel data (cross-sectional time series data) approach. The data set of this exploration involves four SA members among 9 countries (cross-sectional units). The effects of 8 macroeconomic indicators on gross domestic product volume were examined. The paper also empirically analyzes the (negative impacts of the global financial crisis) on four SA countries’ economic growth during the 1980 – 2020 periods (time series). In this environment, the goods of macroeconomic parameters are anatomized using panel data series. The main findings of this model indicate that the level of population, general government revenue, inflation (average consumer prices), and volume of exports of goods and services, positively affects economic growth. The findings of this paper will be used for increasing the economic growth of south Asian countries.