Impact of Inflation on Economic Growth: Evidence from South Asian Countries

Abstract

Purpose: The main objectives of this research are to investigate the impact of inflation rate on economic growth, the relationship between inflation rates on economic growth and covid 19 effects on economic growth in South Asia. Design/Methodology/Approach: In this study, the researchers used a quantitative approach. The target population of this study are the eight South Asian countries, and the research sample is same as the population. The sample period is 20 years from 2002 and 2021. Further, this study concentrated on secondary data. Data were analyzed using descriptive analysis, correlation analysis, ARDL approach. Findings: Based on the ARDL analysis, it can be concluded that there is a significant negative impact of inflation on economic growth before COVID 19. However, it was identified that there is a positive but insignificant impact of inflation on economic growth during COVID 19. Originality: No prior published study has been conducted to examine the impact of inflation on economic growth on South Asian countries during and before COVID 19