This study estimates a small open economy DSGE model for Sri Lanka to find out the driving forces of business cycles. The model replicates moments of actual data fairly well and it outperforms BVAR models estimated with the same data. The application of the estimated model reveals that domestic...

Nowadays, the issue of volatility in GDP is becoming a fundamental development concern due to the undeniable connections between volatility and lack of development. In addition, the recognition of the negative link between short-term fluctuations and long-term growth not only signifies the...

The current study examines the relationship between GDP fluctuations and private investment by using macro panel approach in a panel of five selected South Asian countries (SSAC) including Bangladesh, India, Nepal, Pakistan and Sri Lanka for the period of 1980-2010. The study applies modern...