The Effect of Goods market Efficiency on Economic Growth in Selected Asian Countries

Improving efficiency and productivity has an impact on the main economic, social and political phenomena of societies, such as reducing the level of inflation, increasing the level of public welfare, increasing the level of employment and increasing competitiveness. Efficiency explains the degree of success of an economic unit or a country in the optimal use of inputs to produce output in comparison with other economic units and other countries, therefore, examining the effects of efficiency on macroeconomic variables is very important. Therefore, the aim of this study is to analyze the effects of the goods market efficiency pillar in the global competitiveness index on economic growth with an emphasis on the factors affecting this efficiency (technology, trade and investment) in Asian countries with a moderately high competitiveness index during the period of 2008-2018. For this purpose, the effects of goods market efficiency on the economic growth of these countries were investigated using the panel vector error correction model (PVECM). In general, the results indicate that the positive shock of this type of efficiency (improving the efficiency of the goods market) in the medium and long run leads to an increase in the economic growth rate and a decrease in the unemployment rate. Also, the results showed that the most effective variable on the efficiency of the goods market is investment, which has the greatest impact on the efficiency of the goods market in the long run.