Purpose

This paper empirically examines the relationship between foreign direct investment, financial development and other macroeconomic variables like trade openness, domestic investment and labour force and that of GDP per capita in select South Asian countries, i.e. India, Sri Lanka and Pakistan for the period 1990–2018.

Design/methodology/approach

The study uses various econometrics tools such as Pedroni, Kao and Johansen–Fisher panel cointegration test, Panel FMOLS and DOLS and Granger causality in order to analyse the long-run and short-run dynamics among the variables under consideration.

Findings

The results of the panel data estimation techniques employed imply that there is a short-run causality running from GDP per capita to FDI and financial development, and results from FMOLS and DOLS indicate that FDI and financial development have positive impacts on GDP per capita in the countries under consideration.

Originality/value

In this paper, we use a dynamic macroeconomic modelling framework to examine the effect of FDI and financial development on per capita income in three major south Asian economies, which are categorized as three Non-Least Developed Contracting States under the South Asian Free Trade Area (SAFTA), 2006, established with an aim to facilitate free trade among them. Considering the diversity of the level of growth experienced by these economies, the study uses appropriate panel regression techniques. Therefore, in addition to proper formulation of policies directed towards scaling up of export and import levels, the respective authorities should also take care that the political stability and institutional quality are maintained.

中文翻译：

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南亚主要经济体的外国直接投资、金融发展和经济繁荣

目的

本文实证检验了 1990 年至 1990 年期间特定南亚国家（即印度、斯里兰卡和巴基斯坦）的外国直接投资、金融发展和其他宏观经济变量（如贸易开放、国内投资和劳动力）与人均 GDP 之间的关系。 2018 年。

设计/方法/方法

该研究使用各种计量经济学工具，例如 Pedroni、Kao 和 Johansen-Fisher 面板协整检验、面板 FMOLS 和 DOLS 以及 Granger 因果关系，以分析所考虑变量之间的长期和短期动态。

发现

采用面板数据估计技术的结果表明，人均 GDP 与 FDI 和金融发展之间存在短期因果关系，而 FMOLS 和 DOLS 的结果表明，FDI 和金融发展对人均 GDP 具有正向影响。考虑的国家。

原创性/价值

在本文中，我们使用动态宏观经济模型框架来研究 FDI 和金融发展对三个主要南亚经济体人均收入的影响，这些经济体被归类为南亚自由贸易区下的三个非最不发达国家（ SAFTA)，2006 年成立，旨在促进它们之间的自由贸易。考虑到这些经济体所经历的增长水平的多样性，该研究使用了适当的面板回归技术。因此，除了适当制定旨在扩大进出口水平的政策外，有关当局还应注意保持政治稳定和制度质量。