Is Per Capita GDP Non-linear Stationary In SAARC Countries?
Using data for SAARC region, the authors found real GDP per capita is nonlinear stationary implying that shocks to economy by economic policies (external or internal) have permanent effects on real per capita GDP of SAARC countries. This finding reveals that classical growth model works better to boost economic growth in long run. Economic growth is basic indicator to measure economic prosperity of any nation while economic wellbeing is judged by economic development. To measure economic growth, normally, they use real GDP per capita. This variable is also used to analyse the effect of economic policies as well as to forecast future trends of economic growth.