Efficiency of Macroeconomic Variables to Explain Economic Growth in the BIMSTEC Region.

This article has examined the impact of selected macroeconomic variables on economic growth in the Bay of Bengal Initiative for Multi-sectoral, Technical and Economic Cooperation (BIMSTEC). Thus, quarterly data have been considered over a period from 2000 to 2021. The study has taken into consideration the Cobb-Douglas production function as a model specification to examine the above issue. It has been found that agricultural production is an important macroeconomic determinant to justify economic growth in BIMSTEC and its members. However, foreign direct investment is a significant macroeconomic factor for economic growth in BIMSTEC and also in India. Moreover, GDP in Bhutan, Sri Lanka and Thailand is positively and significantly affected by the balance of trade. [ABSTRACT FROM AUTHOR]