Determinants of economic growth in Asian countries

Asia consists of 50 countries with the largest population and continental economy in the world in terms of both nominal GDP and PPP. Despite the extensive literature on the determinants of economic growth, research on this topic in Asian countries remains limited. This article evaluates the determinants of economic growth in Asian countries over the past two decades. The System Generalized Method of Moments (SGMM) proposed by Arellano and Bond (1991) is used in the research sample of 32 Asian countries from 2003-2022. Data for the analysis are taken from the Global Development Index (WDI) compiled by the World Bank. Research results indicate that economic growth in Asian countries is determined by the following factors: foreign direct investment (FDI), labor ratio (LAR), public expenditure (GCE), inflation rate (INF), and economic openness (OPEN). These research findings have significant implications for those involved in reforming macroeconomic policies with the objective of stimulating economic growth in Asian countries in the future.