Explaining South Asia's Economic Growth: An Empirical Analysis

South Asian economies during recent times reveal that the overall macroeconomic performance of these economies has considerably increased compared to pre-1980s period. However, the major issue which is preventing South Asia from improving further is poor institutional quality, and, more importantly, the political instability and crisis. Studies have observed strong correlation of growth between neighbouring countries. These economic and political realities along with other social and cultural factors make South Asia a highly appropriate setting to study the determinants of economic growth in the region. The study utilizes both time series and panel data techniques to estimate the determinants of economic growth of the South Asian countries.