Openness, Financial Development and Economic Growth in South Asia

Abstract

The objective of this paper is to assess the impact of openness and financial development on six South Asian economies for 1985-2017. It considers the achievements of an economy in terms of important indicators such as economic growth, openness, domestic credit to the private sector, population growth, capital and labor. The paper uses fixed effects, random effect model and Panel Ordinary Least Square (OLS) techniques. The analysis clearly specified that economic growth, increased following to openness and financial development. The quantitative examination also proposed that greater financial development and openness has an encouraging effect on economic growth. The findings of this research can be a motivating example of the increasing interest in openness for other countries.