Document Type : Original Article
Department of Economics, Federal Urdu University of Art, Science and Technology Islamabad, Pakistan
Research Problem and Objective: The Study investigates political as well as economic institutions nexus for the panel of SAARC countries over the period 2004 -2020. We divide data into pre and post samples to find impact of international financial crisis.
Method: Static and dynamic panel Generalized Method of Moments (GMM) techniques are used to seek the estimation with fixed effects.
Result: The empirical results illustrate that improvement in institutions is necessary to enhance long run economic growth for SAARC countries. Pre and post samples differentiate the quality of political and economic institutions
Conclusion: The estimated results show that institutions are important for long run growth of SAARC countries. It reveals that there are some common factors which impact growth through declining quality of institutions. Economies can uplift the growth to overcome the effects of these factors by improving quality of economic as well as political institutions.