THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND POLITICAL STABILITY IN SOUTH ASIAN COUNTRIES

Abstract

As a critical determinant of the development trajectory of South Asian countries, economic growth is related to political stability. This study then, focuses on the effects of political instability—or lack of thereof—on economic performance of key nations in the region, including Pakistan, India, and Bangladesh. The research investigates how stable governance enhances investment, policy continuity, and sustainable economic growth by analysing past trends, case studies and previous literature, in contrast, political uncertainty results in an economic volatility, a lack of investor confidence and inadequate execution of policy. It indicates that political instability has a less negative effect on economic growth under stronger institution, transparent governance and regional cooperation. The policy recommendations at the end of the study are around how to strengthen democratic institutions and promote economic reforms, as well as facilitating economic collaboration across borders to achieve long-term stability and growth in South Asia.