The impact of Economic freedom on economic growth: Evidence from SAARC

Aim That study aims to examine the impact of the economic freedom index, ODA, and economic development on economic growth in SAARC countries. Moreover, it will investigate the short and long-run impacts on GDP per capita in these countries. Methodology it will depend on data for five countries out of 8 countries in SAARC due to a lack of data for some countries from 2005 to 2019. The independent variable is GDP per capita, while the dependent variables are the economic freedom index, HDI, ODA, and FDI. The methodology adopted will begin with a unit root test then the FMOLS model will be adopted. Findings This study ends with a positive effect of HDI and economic freedom index on economic growth but negative effects of FDI and ODA on economic growth. The methodology adopted will begin with a unit root test then the FMOLS model will be adopted. Originality This paper supports the idea of promoting economic growth and economic development within the dependence of investors on economic freedom and how they linked economic freedom with FDI