The Determinants of Economic Growth: Experience of China, Japan, South Korea and India

Abstract

The present paper is a sincere effort to analyse the role of the various determinants of economic growth in China, Japan, South Korea, and India for the period of 1980-2016. Panel Cointegration, Panel Vector Error Correction Model, and Granger Causality have been incorporated to determine the causal relationship among the selected determinants of economic growth. There is evidence of significant long-run causality of selected variables, i.e. services value-added, gross fixed capital formation, exports, and school enrollment ratio, but industrial value-added has not shown a significant impact on GDP per capita and also has not shown the long-run causality with selected variables. Also, the school enrolment ratio, GDP per capita, and service value-added have an important role in causeand- effect relationships among selected variables. The study suggests that there is a need to raise productivity and rapid industrialisation in these economies. In addition, improvement in technology, reduction in corruption, general welfare and happiness of people, and Research and Development (R&D) are required to recognise the maximum benefits of growth and development. � 2022 SCMS Group of Educational Institutions. All rights reserved.