Determinants of inflation in Pakistan, India, Bangladesh and Sri Lanka: A panel data analysis.

Abstract

This article examines inflation issues in Pakistan, India, Bangladesh, and Sri Lanka. This study used 1980–2020 World Bank panel data. Diagnostic tests precede model selection, guide us to choose the Robust System GMM model. The finding was significant, showing that trade factors like current account balance and exchange rate favour inflation in such locations. The RIR also affects inflation in those four countries. These insights will help these countries develop inflation-controlling policies