A Dynamic Perspective Of Macroeconomic Stability, Macroeconomic Conditions & Economic Growth: Evidence From N11 Countries

Abstract

This study aims to analyze the long run relationship between macroeconomic stability, macroeconomic conditions and economic growth of next eleven (N11) countries over the period of 2009 to 2018. Study uses one proxy for measuring macroeconomic stability (inflation) and two proxies for measuring macroeconomic conditions (investments and trade openness). This study uses Pedroni residual cointegration test to investigate the dynamic long run relationship between endogenous variable (GDP) with exogenous variables (inflation, investments and trade openness). Empirical results affirm cointegration among understudy variables at second difference. This study is significant in understanding the role of macroeconomic factors in boosting economic growth of N11 countries. This research opens debate on the significant role of N11 emerging economies in enriching world economic performance.