DETERMINANTS OF ECONOMIC GROWTH A STUDY OF SELECTED ASIAN COUNTRIES

Abstract

Asia is a developing and fastest growing region of the world. In 1960s, Asia made a sound recovery known as Asian Miracle . Its sound recovery during global financial crisis has changed its traditional picture among the advanced regions like North America and Europe. It is highly unequal region in the world in terms of economic growth substantiated by the fact that developing Asia covers only its three sub-regions namely East Asia, South-East Asia, and South Asia out of five total regions. Therefore, the rising influence of Asia in global economy and among advanced nations along with rising inequality raises the question that what are the important factors driving rapid economic growth of Asian economies and if these factors lead to their growth differences? Is there any possibility of equitable growth of Asian economies in the long-run? If yes then what could be the contributing factors?. In regard with this research problem there are few studies available related to determinants of economic growth of Asia. In line with these research questions and research gap, this study works with the objectives to study the trend and pattern of economic growth of Asian economies; to investigate the level of income disparity across the Asian economies; to look for convergence possibility across Asian economies; to explore the drivers of economic growth of Asian economies; to suggest for appropriate policy options rapid and equitable growth of Asian economies. This study is an empirical in nature covering the time period from 1975 to 2015 and follows a macroeconomic approach. The twelve have been selected purposively out of total 50 Asian economies on the basis of income classification by World Bank, 2015. The methodology used in this study is specified as per objectives. For the first objective, time series plots has been prepared for variables of economic growth and trend pattern are observed for selected countries. For second objective, income disparity has been observed through maximum to minimum ratio, measure of dispers