Determinants of Economic growth concerning selected countries of Emerging and Developing Asian countries

Abstract

Proliferating at consistent rates, developing Asian countries will account to about 66.66% of the global economy in 2035 as per Asian Development Bank. The emerging Asian countries had grown rapidly in the past two decades and had shown great resilience in times of uncertainty. The spectacular growth of emerging Asian countries in the last 2 decades astonished the field of economics and motivated researchers to try to explain this behaviour. Policy reforms in education, research and development, ease of doing business, strength of financial markets, property rights had substantially contributed to the GDP growth.
The 2008 global financial crisis and the worldwide economic meltdown in 2018-19 both had affected the economy in the last two decades. The global expansion rate is anticipated to decline to 2.7% in 2023 from 6.0% in 2021 to 3.2% in 2022 as per IMF. Emerging & developing Asian countries growth projections had decreased from 7.2% in 2021 to 4.9% in 2023. A foreknown drop-in global economic trade and commerce is currently being experienced, and diverging inflation is at the peak since last few decades. Rising cost of living, the tightening of global finance conditions, which could lead to debt distress in emerging markets, COVID-19 pandemic situation which is ongoing, Ukraine invasion by Russia, all have had a negative impact on the growth rate. Despite of all this the future forecast of growth is showing significant sustainability and all the emerging Asian countries are showing a very promising story. This research paper aims to recognise the factors influencing economic growth in emerging and developing Asian countries. Gross domestic product and Gross National Income are factors which are the indicators of economic growth in line with the other factors studied like Foreign Direct Investment, inflation, export, employment, productivity, and education.