Abstract
The main aim of the present study is to empirically investigate into the question
whether the Institutional Quality (IQ) and Trade Openness (TO) are competitors or
complements in Economic Growth (EG) in case of sample South Asia Economies;
“India, Bangladesh, Pakistan, and Sri Lanka”. The panel data for the period of
1984-2018 has been utilized. The Fixed Effects Model (FEM) estimation
technique has been applied for empirical investigation. The empirical results of
FEM confirm the positive and statically significant impact of IQ and Interaction
Term on Economic Growth in sample countries. The positive significant results
strongly supported the hypothesis of this study, the IQ and TO are complements in
EG in the case of sample SAE. The IQ measure has also established positive and
significant effects on EG while the TO has a negative impact. Based on empirical
findings, this study recommends that the policymakers of sample countries should
make policies that strengthen the IQ, in order to improve trade and, consequently,
the EG
Hafiz Muhammad Qasim, Dr. Abdul Majid, Dr. Atif Jadoon. (2021) Institutional Quality, Trade Openness and Economic Growth in South Asian Economies: Some New Insights from a Panel Data Analysis, South Asian Studies, Volume-36, Issue-1.
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