Impact of Macroeconomic and Financial Indicators on Economic Growth: A Case of Eight Eurasian Countries

This study examines the multifaceted determinants of GDP growth in eight Eurasian countries (Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) focusing on the interplay of macroeconomic and financial indicators, labor markets, demographics, and trade. The research aims to provide a comprehensive analysis of the factors influencing economic growth in the Eurasian region and to offer insights for policymakers. Utilizing a panel data analysis approach over a specified time span from 1993 to 2020, the study explores the individual as well as the collective impacts of these factors on GDP growth, considering both country-specific effects and time trends. The study's findings underscore the significance of macroeconomic stability, characterized by low inflation rates and high industrial concentration in domestic GDP, in fostering GDP growth. Furthermore, the analysis highlights the anticipated substantial impact of labor market dynamics, as measured by unemployment levels, on economic growth. The study also underscores the significance of demographic trends, such as population growth and urbanization, in driving GDP growth. Furthermore, it is anticipated that trade openness and financial market development will have a positive effect on GDP growth in the Eurasian region. These expectations underscore the complex nature of economic growth in Eurasian countries, and the empirical results imply that policymakers should consider a comprehensive approach that addresses various factors to promote sustainable economic development in the long run.