Replication Data for: Assessing spillover effects of China's current account surplus on the economic growth of the SAARC nation.

This research evaluates the potential spillover effects of China’s current account surplus on the economic growth of the SAARC region. The data set covers a time frame from 1994 to 2022 and both country-specific and regional growth is analyzed using a structural vector auto-regression (SVAR) model to estimate the trickle-down effects on the selected 5 SAARC nations from China's positive current account balance. The SAARC countries under investigation are: Bangladesh, India, Nepal, Pakistan and Sri Lanka. The fundamental macroeconomic variables which are included in the study: are current account balance % of GDP, trade % of GDP, official exchange rate (in natural logarithmic form), GDP per capita and the Inflation rate. The theoretical framework suggests the generic economic doctrine of one country’s current account surplus fueling the other country’s current account deficit and subsequently, dampening its economic growth. In contrary, this research finds that China's positive current account balance since 1994 has transmitted positive spillover effects on significant macroeconomic fundamentals, having positive domino effects on the economic growth of specifically, Pakistan, India and Nepal. Although, a number of short-run relationships amongst the variables of the SAARC nations are estimated: Bangladesh is the only nation that might exhibit a long run- relationship of its GDP per capita with China's positive current account balance.