Impact of Account, Transparency, and Accountability Indicators on Economic Growth: Evidence from South Asian Countries

This study examines the intricate relationships between Account, Transparency, and Accountability indicators and GDP growth across a panel of countries, focusing on the Current Account Balance (CAB), Net Capital Account (NCA), Net Financial Account (NFA), CPIA Transparency Rating, and Voice and Accountability (VA). Drawing on economic theory and empirical analysis, we investigate how these variables influence Economic (GDP) growth dynamics. Theoretical underpinnings suggest that positive CAB reflects trade surpluses, contributing positively to GDP through increased economic activity, while NCA inflows stimulate long-term productivity gains. Conversely, negative NFA indicates potential adverse effects on GDP from capital outflows. Empirical findings using fixed effects, random effects, and Feasible Generalized Least Squares (FGLS) regression reveal significant associations: positive CAB and NCA correlate with higher GDP growth, whereas NFA shows a negative impact. CPIA and VA, while important for governance, do not directly affect GDP growth in this context. This research contributes by providing nuanced insights into the drivers of economic growth, informing policy strategies for sustainable development and institutional enhancement.