Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334105 
Year of Publication: 
2023
Citation: 
[Journal:] Asian Journal of Economics and Banking (AJEB) [ISSN:] 2633-7991 [Volume:] 7 [Issue:] 3 [Year:] 2023 [Pages:] 358-379
Publisher: 
Emerald, Leeds
Abstract: 
Purpose - The main purpose of this research is to examine the influence of macroeconomic stability on economic growth of SAARC (South Asian Association for Regional Cooperation) countries. Design/methodology/approach - Using panel data of 1991-2020, fixed effect regression analysis, pooled ordinary least squares and generalized method of moments techniques have been conducted to demonstrate whether macroeconomic stability contributes to economic growth. Moreover, cross-sectional dependency test, unit root test, correlation analysis and granger causality tests have been run. Findings - Robust findings indicate that inflation has negative impacts on economic growth which indicates that lower level of macroeconomic instability promotes countries' economic growth. This study also observed that foreign direct investment, domestic credit delivered to private sector, currency exchange and institutional difference across countries are affirmatively connected while labor force is negatively associated with economic growth. Originality/value - Empirical findings of this study signify that macroeconomic stability have significant effects on economic growth. Findings of this study have superior contributions for the policy makers to achieve sustainable economic growth.
Subjects: 
Cross-sectional dependence
GDP per Capita
Macroeconomic stability
Panel causality
SAARC region
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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