Natural Resources, Institutional Quality and Economic Growth: Evidence from South Asian Countries

Abstract

The present research examines the correlation between natural resources, institutional quality, and economic growth in five nations in South Asia. To estimate the model, the study utilized the Fully Modified Ordinary Least Squares (FMOLS) estimation technique, analyzing data spanning from 2001 to 2020. The study reveals that natural resources exert a significant negative impact on growth while institutional quality wields a significant positive effect on economic growth. Additionally, labor and capital demonstrated a significant positive influence on economic growth. These outcomes have important implications for policymakers and decision-makers, urging them to consider the complex interplay of natural resources, institutional quality, labor, and capital in shaping economic growth strategies.