Izvorni znanstveni članak
https://doi.org/10.2478/zireb-2025-0014
Unlocking Prosperity: How Inflation, Unemployment, Capital Formation, and Landlockedness Shape Economic Growth in Asia
Prem Bahadur Budhathoki
orcid.org/0000-0002-1249-7005
; Tribhuvan University, Saraswati Multiple Campus, Kathmandu, Nepal
*
Arjun Kumar Dahal
; Tribhuvan University, Mechi Multiple Campus, Jhapa, Nepal
Ganesh Bhattarai
orcid.org/0000-0001-9163-5172
; Tribhuvan University, Saraswati Multiple Campus, Kathmandu, Nepal
* Dopisni autor.
Sažetak
This study explores the impact of inflation, unemployment, gross capital formation, and landlockedness on economic growth in Asian countries. It is based on secondary data collected from World Bank reports of respective countries. The unbalanced panel dataset comprising 38 Asian nations from 1990 to 2023 is utilized. The analysis utilizes 1006 annual data points. Panel Generalized Method of Moments (GMM) is used to examine the impact of inflation, unemployment, capital formation, and the landlocked position of a country on economic growth. The present economic growth is also affected by the previous year's economic growth in Asian countries. Inflation, unemployment, and gross capital formation determine economic growth. Unemployment is also statistically significant to explain economic growth. GDP growth Statistically, it is found that one unit increase in previous years’ economic growth and inflation rate results in a 2.306 and 0.1086 unit increase in economic growth, but one unit increase in unemployment results in a 2,3869 unit decrease in economic growth. Likewise, every increase in gross capital formation results in 0.2819 unit increase in economic growth in Asian countries. To stimulate economic growth in Asian countries, policies should prioritize the reduction of unemployment and inflation while promoting surplus capital formation. Furthermore, targeted assistance for landlocked countries may offset their economic disadvantages.
Ključne riječi
Okun’s Law; accumulation; hyperinflation; generalized method of moments; causality
Hrčak ID:
341947
URI
Datum izdavanja:
30.11.2025.
Posjeta: 453 *