<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study aims to investigate the role of three important external resources on the economic growth of leading South Asian countries. A sample of four countries is studied from 1983 to 2014. Empirical analyses are carried out in two phases. First, we have checked the combined effect using CD test, CIPS, Pedroni, and Westerlund panel cointegration, pooled mean group (PMG) framework and Heterogeneous non-causality test. In the second phase, we compared the regional and country-wise estimations using ARDL bound testing, stability test, and Granger causality. Results suggest that remittances play a vital role in the economic growth of selected South Asian countries, whereas, imports and foreign direct investment found to be insignificant. Also, while evaluating the same model for the individual countries using the ARDL estimations also reveal that remittances significantly contribute to the economies of Pakistan and Sri Lanka and imports found to be negatively related with economic growth in the same economies. However, imports showed a strong relationship with the economic growth of Bangladesh. Thus, this paper has drawn some insights for the policymakers.</p></abstract>

This study aims to investigate the role of three important external resources on the economic growth of leading South Asian countries. A sample of four countries is studied from 1983 to 2014. Empirical analyses are carried out in two phases. First, we have checked the combined effect using CD test, CIPS, Pedroni, and Westerlund panel cointegration, pooled mean group (PMG) framework and Heterogeneous non-causality test. In the second phase, we compared the regional and country-wise estimations using ARDL bound testing, stability test, and Granger causality. Results suggest that remittances play a vital role in the economic growth of selected South Asian countries, whereas, imports and foreign direct investment found to be insignificant. Also, while evaluating the same model for the individual countries using the ARDL estimations also reveal that remittances significantly contribute to the economies of Pakistan and Sri Lanka and imports found to be negatively related with economic growth in the same economies. However, imports showed a strong relationship with the economic growth of Bangladesh. Thus, this paper has drawn some insights for the policymakers.

External Resources and Economic Growth: An Empirical Analysis of South Asian Countries

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This study aims to investigate the role of three important external resources on the economic growth of leading South Asian countries. A sample of four...

External Resources and Economic Growth: An Empirical Analysis of South Asian Countries

Published Online: Dec 05, 2018

Page range: 1 - 17

DOI: https://doi.org/10.2478/zireb-2018-0010

Keywords
external resources, GDP, South Asian countries, cross-sectional dependence, heterogeneity, PMG framework

© 2018 Imtiaz Arif, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

External Resources and Economic Growth: An Empirical Analysis of South Asian Countries

Published Online: Dec 05, 2018

Page range: 1 - 17

DOI: https://doi.org/10.2478/zireb-2018-0010

Keywordsexternal resources, GDP, South Asian countries, cross-sectional dependence, heterogeneity, PMG framework

© 2018 Imtiaz Arif, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
external resources, GDP, South Asian countries, cross-sectional dependence, heterogeneity, PMG framework