Human Well-being and Macroeconomic Environment in South Asia

Abstract

The study Analysis the impact of foreign direct investment, final consumption expenditure, inflation, and unemployment on the GDP per capita of four South Asian countries namely; Pakistan, India, Bangladesh, and Sri Lanka. For the statistical analysis, data was used from 1991 to 2015, and data is collected from the World Bank database namely; the World development indicator (WDI). Levin Lin Chu unit root test is used to investigate the stationary of the variables of the model. The panel model pooled mean group/ARDL is used to interrogate the cointegration through the variables of the model. The result shows that inflation has positive and insignificant relations with GDP per capita in Pakistan, India, Bangladesh, and Sri Lank. Government should adopt those policies which increase FDI to make a positive and significant relationship with GDP per capita in south Asian countries named Pakistan, India, Sri Lanka, and Bangladesh. The countries should adopt policies to control inflation. Increasing the amount of the GDP per capita reduces unemployment.