Post crisis Structural Reforms and Goal of Economic Stability; Role of Banking Sector in SAARC Countries

Abstract

The present study aims to analyze post crisis structural reforms in SAARC countries and their subsequent effects on economic development of respective countries. Furthermore, it also observes the role of banking sector in achieving the goals of economic stability in respective countries. Owing to quantitative data, the positivist research methodology has been used for achievement of aforesaid objectives, along with pertinent financial and economic variables. A set of panel data are developed and based on Housman Test; Fixed Effect Method has been selected. The period of analysis covers 30 years (1989 to 2018). Main results are in favor of long-term effects of structural reforms in achieving the goal of economic stability with potential role of financial sector in SAARC. It is indispensable to implement the reforms with true letters and spirit in financial sector to attain high economic growth for the respective countries.