![]() Investigations related to economic growth may be approached from different perspectives however, this study focuses on globalization and its impact on economic growth. With a combined population of about 1.75 billion or about one-fourth of the world’s population, South Asia consolidates its position as the global leader in economic growth, and the forces that determine such economic growth are worthy of investigation. In ( 2017), the Asian Development Bank (ADB) predicts that South Asia’s economy as a whole is anticipated to rise to 7% in 2017, progressing to 7.2% in 2018. Most interestingly, the performances of the South Asian economy during the 21st century have been quite impressive as the average GDP growth has been increased to 6.82% per annum, while the world average is decreased to 2.78% (World Bank 2017b). Though South Asian Footnote 1 countries still stay behind than of world benchmarks based on most economic and social indicators, according to the average annual growth of GDP, the South Asian region experiences an average 5.4% annual growth, while the world average is only 3.1% over the recent five decades (World Bank 2017a). The policy implication is that the governments of South Asian countries should realize the importance of globalization as a powerful influencing force and should adopt the new circumstances of globalization quickly and try to find coherent policies to be connected with an evolving world.Įconomic growth has long been considered as a central macroeconomic goal of economic policy, and thus, a substantial body of research has been performed over the years to explain how this goal is successfully accomplished. Focusing on the individual country regressions, we find the amalgam results, as the characteristics, elasticity, and strength of political, social, and economic institutions are different in the selected countries. Results report that overall globalization, economic globalization, and political globalization accelerate economic growth in the long-run however, the dimensions of globalization have no significant effect in the short-run. The paper investigates the impact of globalization (overall, economic, social, and political) on economic growth of South Asian countries over the period from 1971 to 2014 employing cross-sectional dependence test, Cross sectionally Augmented Dickey–Fuller (CADF) unit root test (Pesaran in J Appl Econ 22(2):265–312, 2007), and Pooled Mean Group (PMG) panel cointegration model (Pesaran et al.
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