Relationship between Global Peace Index and Economic Growth of SAARC Countries: An Empirical Analysis Dr. Sarkar Madhulika1, Oberoi Shelly2 1Assistant Professor, IGNOU, India 2Research Scholar, IGNOU, India Online published on 31 October, 2017. Abstract Purpose The objective of the research is to study the Trends of Gross Domestic Product (GDP) of SAARC Countries and their position in Global Peace Index (GPI) over the years and also to observe the impact of GPI on the GDP of SAARC Countries. Design/Methodology/Approach The data for GPI and GDP of SAARC Countries has been collected for time period of 2008–2017. To evaluate the data and to establish the connexion, Augmented Dickey Fuller (ADF) Test and Philip Perron test, Johanson's cointegration approach, and Granger causality has been employed. Further, Panel data cross sectional fixed effect has been applied. Findings The result suggests a Uni-variate causality between GPI scores and GDP of Afghanistan, Bangladesh, India and Srilanka, where as in Nepal and Bhutan, there is no Co-integration and Causality between the two parameters. Pakistan is the only SAARC Nation which depicts a Bi-Variate causality between GPI and GD Pscores. Maldives have been omitted from the analyses as it is not part of Global Peace Index. Practical Implications The results of the research would help the nations to develop the strategies to maintain peace and harmony resulting in the growth and development. Top Keywords Global, Growth, Peace, Political, Stability. Top |