Impact of Macro Economic Variables on Economic Growth in Sri Lanka
There are many factors affected to determining the Economic Growth in a country. Among them budget deficit, domestic savings, government expenditure and Foreign Direct Investment are major factors identified in the study. This study is aimed to find out the relationship between macroeconomics variables and economic growth in Sri Lanka by using Regression Analysis, Correlation Analysis and Hypothesis test were used for period 1987 to 2016. The study found that foreign direct investment, budget deficit, domestic savings and government expenditure influence changes in the economic growth Sri Lanka.
Keywords - Budget deficit, domestic savings, government expenditure, Foreign Direct Investment.