Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC

Policymakers’ main focus is economic growth, particularly in areas like BIMSTEC where structural problems and globalization’s influences greatly affect paths of development. With special focus on the moderating function of globalization, this study examines the link between physical capital, human c...

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Main Authors: Muhammad Raihan Uddin, Nafis Sadik, Md. Mominur Rahman
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Research in Globalization
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Online Access:http://www.sciencedirect.com/science/article/pii/S2590051X25000176
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author Muhammad Raihan Uddin
Nafis Sadik
Md. Mominur Rahman
author_facet Muhammad Raihan Uddin
Nafis Sadik
Md. Mominur Rahman
author_sort Muhammad Raihan Uddin
collection DOAJ
description Policymakers’ main focus is economic growth, particularly in areas like BIMSTEC where structural problems and globalization’s influences greatly affect paths of development. With special focus on the moderating function of globalization, this study examines the link between physical capital, human capital, and economic growth. The paper analyzes the relationships using advanced econometric methods including cross-sectional dependency, stationarity, cointegration, and fully modified ordinary least squares using panel data from 1990 to 2019. The results show a complicated link: while physical and human capital have positive direct effects on growth, globalization negatively moderates these relationships in BIMSTEC due to the region’s diverse economic structures and different degrees of integration with global markets, so transforming them into stronger growth drivers in the long run. Dynamic ordinary least squares and ARDL models’ robustness testing help to validate the results. Especially, although the associations maintain in the long-run, the short run shows no appreciable influence. These findings have significant consequences for policy since they encourage BIMSTEC nation officials to match globalization with capital accumulation policies in order to support sustainable economic development. This paper provides a route for creating long-term development programs that include worldwide possibilities into regional economic strategy.
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spelling doaj-art-d839518b601e4d4496e90f6af027bbf62025-08-20T02:32:26ZengElsevierResearch in Globalization2590-051X2025-06-011010028410.1016/j.resglo.2025.100284Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTECMuhammad Raihan Uddin0Nafis Sadik1Md. Mominur Rahman2Bangladesh Institute of Governance and Management (BIGM), Dhaka, BangladeshBangladesh Institute of Governance and Management (BIGM), Dhaka, BangladeshCorresponding author.; Bangladesh Institute of Governance and Management (BIGM), Dhaka, BangladeshPolicymakers’ main focus is economic growth, particularly in areas like BIMSTEC where structural problems and globalization’s influences greatly affect paths of development. With special focus on the moderating function of globalization, this study examines the link between physical capital, human capital, and economic growth. The paper analyzes the relationships using advanced econometric methods including cross-sectional dependency, stationarity, cointegration, and fully modified ordinary least squares using panel data from 1990 to 2019. The results show a complicated link: while physical and human capital have positive direct effects on growth, globalization negatively moderates these relationships in BIMSTEC due to the region’s diverse economic structures and different degrees of integration with global markets, so transforming them into stronger growth drivers in the long run. Dynamic ordinary least squares and ARDL models’ robustness testing help to validate the results. Especially, although the associations maintain in the long-run, the short run shows no appreciable influence. These findings have significant consequences for policy since they encourage BIMSTEC nation officials to match globalization with capital accumulation policies in order to support sustainable economic development. This paper provides a route for creating long-term development programs that include worldwide possibilities into regional economic strategy.http://www.sciencedirect.com/science/article/pii/S2590051X25000176GlobalizationEconomic growthHuman capitalPhysical capitalBIMSTEC
spellingShingle Muhammad Raihan Uddin
Nafis Sadik
Md. Mominur Rahman
Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC
Research in Globalization
Globalization
Economic growth
Human capital
Physical capital
BIMSTEC
title Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC
title_full Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC
title_fullStr Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC
title_full_unstemmed Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC
title_short Globalization, physical capital, and human capital nexus with economic growth: evidence from BIMSTEC
title_sort globalization physical capital and human capital nexus with economic growth evidence from bimstec
topic Globalization
Economic growth
Human capital
Physical capital
BIMSTEC
url http://www.sciencedirect.com/science/article/pii/S2590051X25000176
work_keys_str_mv AT muhammadraihanuddin globalizationphysicalcapitalandhumancapitalnexuswitheconomicgrowthevidencefrombimstec
AT nafissadik globalizationphysicalcapitalandhumancapitalnexuswitheconomicgrowthevidencefrombimstec
AT mdmominurrahman globalizationphysicalcapitalandhumancapitalnexuswitheconomicgrowthevidencefrombimstec