Technological Innovation, Trade Openness, and Economic Growth in South Asia. Evidence from Panel Econometric Analysis
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ID: 312036
2026
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Abstract
This study examines the relationship between technological innovation, trade openness, and economic growth in selected South Asian Association for Regional Cooperation (SAARC) countries—Bangladesh, India, Pakistan, and Sri Lanka. The panel data over the period of 1996 to 2024 has been utilized. Using balanced panel data and employing fixed-effects estimation supported by standard diagnostic tests, the analysis incorporates institutional quality, human capital, and physical capital as control variables. The empirical results reveal a positive and statistically significant impact of innovation, institutional quality, human capital, and physical capital on real GDP per capita. In contrast, trade openness is found to exert a significant negative effect on economic growth in the sample countries. These findings suggest that while innovation and factor accumulation play a crucial role in promoting growth, greater trade openness may adversely affect growth in South Asia, possibly due to persistent trade deficits and limited export competitiveness. The study highlights the need for policies that promote research and development, strengthen institutions, and enhance human capital to improve innovation capacity and support sustainable economic growth in the region.
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| Authors | Muhammad Ghulam Shabeer |
| Journal | Social Sciences & Humanity Research Review |
| Year | 2026 |
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