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Macroeconomics Determinants of Fiscal Sustainability in the Asian Countries

Author

Listed:
  • Jawaria Zahid

    (Scholar, School of Economics, University of the Punjab Lahore, Pakistan)

  • Atif Khan Jadoon

    (School of Economics, University of the Punjab Lahore, Pakistan)

  • Bisma Hamza

    (Independent Researcher, Beaconhouse System, Lahore, Pakistan)

  • Muhammad Ali

    (Institute of Business Administration, University of the Punjab Lahore, Pakistan)

Abstract

The present study is designed to investigate how macroeconomic determinants of the South Asian region have affected the fiscal sustainability from 1980 to 2021. This study has used Newey and West (1987) robust standard errors approach to overcome the problem of autocorrelation and heteroscedasticity in panel data. The results of the statistical model confirmed the existence of fiscal sustainability in selective Asian countries. The significant contribution of the study is to obtain robust standard errors that rectify the issues of violation of simple regression analysis, which is the solution to all problems relevant to OLS regression. Furthermore, the results also confirmed that using macroeconomic determinants significantly improves fiscal sustainability. The results confirmed that macroeconomic factors contribute to fiscal sustainability. The study concluded that South Asian countries should use macro indicators as sources to achieve a higher fiscal sustainability rate.

Suggested Citation

  • Jawaria Zahid & Atif Khan Jadoon & Bisma Hamza & Muhammad Ali, 2024. "Macroeconomics Determinants of Fiscal Sustainability in the Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 193-201.
    • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:1:p:193-201
    DOI: https://doi.org/10.61506/01.00188
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