Do countries belonging to the same region suggest the same growth enhancing variables? Evidence from selected South Asian countries

We investigate the growth enhancing variables in a group of countries belonging to the same geographical area namely, India, Sri Lanka, Pakistan and Bangladesh over the period 1960–2010. We find that this “homogeneity” does not necessarily imply that countries have the same growth enhancing variables due mainly to differences in institutions and policies. Our result suggests that time-series econometrics are preferable to identify the growth drivers for a country accurately. •We study a homogenous group of South Asian countries to detect the drivers of growth.•The homogeneity is in terms of economic structure and technology.•Homogeneity does not necessarily imply that countries have the same growth drivers.•This is due to differences in institutions and policies in countries.•Empirical studies should focus more on country-specific time-series.