Economic Growth In BRICS Countries Research Articles

Natural resources, economic complexity and growth nexus: Role of digital governance in addressing the resource curse

The nexus between natural resources and economic growth can be significantly influenced by digital governance. Effective digital governance enhances transparency and efficiency in managing natural resources, reducing the risks of mismanagement and corruption. This can lead to more sustainable economic growth and support economic diversification. Understanding these dynamics is essential for policymakers and researchers aiming for inclusive growth in resource-dependent economies. Therefore, this study explores the relationship between natural resources, economic complexity and economic growth of BRICS countries from 2003 to 2022. It also explores the moderating role of digital governance in realizing the relationship between resources and growth. The research utilizes the Method of Moments Quantile Regression, which accounts for non-linearity and addresses concerns related to slope heterogeneity. The findings reveal that natural resource rents adversely affect economic growth, with a significantly negative impact at the lowest quantiles, while digital governance fosters economic growth at the middle to highest quantiles. The moderating effects of natural resources and digital governance suggest that digital governance helps break the cycle of the resource curse. Countries can enhance the marginal contribution of resources towards growth by increasing the digitalization of their systems and processes. Additionally, economic complexity contributes to higher economic growth, with its impact gradually increasing from lower to upper quantiles. Policymakers should consider digital governance as an effective tool for sustainable development.

An empirical analysis of causal nexus between higher education and economic growth in BRICS countries

This study examines the connection between higher education and economic growth in the BRICS countries. This study used the gross enrolment ratio (GER) to gauge the extent of higher education in the BRICS countries, while gross domestic product (GDP) was used to estimate economic growth. The study includes both time series and panel data analysis for all BRICS countries. The vector error correction model (VECM) and the vector autoregressive model (VAR) were applied to time series data to explain the causal relationship between GDP and GER. Panel data were analyzed using the panel vector auto-regression (PVAR) model. The time series analysis revealed that there is both a bi-directional and a unidirectional causal link between economic development and higher education. However, panel data analysis revealed that the causal influence of higher education was more pronounced than economic growth.

The Relationship between Electricity Consumption and Economic Growth in BRICS Countries

This study analyzed the Gross Domestic Product (GDP) determinants in Brazil, Russia, India, China, and South Africa (BRICS). The method used in this study is a Fully Modified Ordinary Least Square (FMOLS) panel that can overcome the problem of non-stationary panels and the effect of heterogeneity between countries. The analysis range of this study is from 1992 to 2021, with three independent variables, namely electrical energy consumption, labor force, and gross fixed capital formation (GFCF) or investment. The results showed a significant favorable influence on energy consumption, labor force, and investment in GDP in BRICS countries from 1992-2021. This research resulted in a review of one of the policy recommendations to improve the economy in BRICS countries.

Fostering green economic growth through sustainable management of natural resources

This study examines the importance of promoting environmentally friendly economic growth by effectively managing natural resources. It specifically focuses on the period from 2005 to 2014 in the BRICS nations. By employing the sophisticated Propensity Score Matching with Difference-in-Differences (PSM-DID) model, our research reveals intricate relationships between sustainable practices and the advancement of green economic development. The research reveals that the strategic and environmentally conscious management of resources positively impacts the economic growth of BRICS countries. The study highlights the importance of specific policy interventions, urging a coordinated effort to promote sustainable resource practices. This research contributes to the literature on sustainable development and environmentally conscious economic growth by providing detailed and sophisticated insights into the underlying dynamics. It is a solid basis for making well-informed policy decisions in the changing global context.

Threshold effect of foreign direct investment on economic growth in BRICS countries: new evidence from PTAR and PSTAR models

Threshold effect of foreign direct investment on economic growth in BRICS countries: new evidence from PTAR and PSTAR models

Energy prices volatility, natural resource policy-making and green economic recovery in post COVID-19 era: Evidence from BRICS countries

The connectedness of natural resource volatility and economic growth has been an area of central attention for academicians and researchers before and even after the COVID-19 pandemic. The global as well as the Asian financial crises have negatively impacted the natural resources and economic growth of countries. Literature lacks the impact of crises on natural resources especially in BRICS economies. Hence, the current study examines the agriculture, livestock, crude oil, metal, and, coal-based natural resource commodities in determining the sustainable economic growth of BRICS countries. To achieve the objectives, data from the GSC index (Goldman Sachs Commodity Index) and different World Bank indicators is collected over a period from 2002 to 2022 which also includes the era of Post COVID-19 pandemic. Augmented dicky fuller test is used to explore the stationarity of constructs while ECM (error correction model) and Granger causality test are used to capture the connectedness between the explanatory and dependent variables. The empirical results infer that prices of commodities based on agriculture, livestock, oil, coal, and valuable metals are positively linked with sustainable economic performance in BRICS Countries. The results may be supportive of accelerating economic growth by improving the extraction and consumption of natural resources, livestock, agriculture, precious metals, oil, and coal.

Examining the Impact of Innovations on Economic Growth in BRICS Countries

The study investigated the causal nexus between innovations and economic growth of Brazil, Russia, India, China and South Africa (BRICS) countries using panel data for the period 2004–2019. The total number of patent applications, the total number of trademark applications and percentages share of research and development expenditures to GDP are used as a proxy to measure innovations. The study used a panel regression with a fixed and random effect model, panel vector autoregression (VAR) model and impulse response function for the analysis. Further, the study checked both the symmetric and asymmetric impacts of innovations on economic growth using the panel autoregressive distributed lag (ARDL) model. The results from different econometric approaches are consistent and found that innovations positively and significantly impact economic growth. The results have also shown that there is a unidirectional causality running from innovations to per capita GDP in the short run. Finally, the results have shown the asymmetric causal linkage between innovations and economic growth. The study suggests that policymakers must encourage more investments in innovations for high economic growth in BRICS countries.

Budget Deficit and Economic Growth in BRICS Countries: Panel Approach

Budget Deficit and Economic Growth in BRICS Countries: Panel Approach

Corruption's effect on BRICS countries' economic growth: a panel data analysis

PurposeThe theoretical debate of corruption's impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption's effect on BRICS countries' economic growth.Design/methodology/approachA panel dataset on BRICS countries spanning 1996 to 2020 was used. Bias-corrected estimators in small dynamic panels were employed to estimate a growth model as a linear-quadratic function of corruption that accounts for cross-sectional dependence, endogeneity and unobserved heterogeneity due to country and time-specific characteristics.FindingsThe results indicate that corruption is detrimental to economic growth in BRICS countries; the quadratic relationship implies corruption is less prevalent in some countries than others. Thus, governments of BRICS countries are encouraged to embark on anti-corruption policies to boost their economic performance.Originality/valueAn important limitation of corruption studies is the difficulty in measuring real corruption experiences due to the secretive nature of corruption and the fact that corruption is known not to leave a paper trail. For the uncertainty of the index estimates, the analysis used a continuous corruption composite score measuring the standard deviation of the extent to which public power is exercised for public gain. Furthermore, estimation and inference are robust to small dynamic panels with a general form of cross-sectional dependence.

Role of natural resources utilization efficiency in achieving green economic recovery: Evidence from BRICS countries

The main goal of this article is to evaluate and analyze the effect of natural resources utilization efficiency on green economic growth in 5 emerging economies (Brazil, Russia, India, China, and South Africa) in the BRICS group. The panel data approach is employed to estimate coefficients by calculating the resource activity coefficient and gathering annual data for 2000–2020. The major results confirm that natural resource utilization efficiency accelerates the green economic growth of BRICS countries. Moreover, the presence of an uni-directional causal linkage from resource utilization efficiency to green economic growth is concluded, meaning that in the short-term, natural resource utilization efficiency can cause green economic growth in BRICS economies. As practical policies, promoting green FDI to increase green technologies transfer, green financing to promote technological innovation, and implementing the principle of 3Rs (Reduce, reuse, recycle) are recommended.

Causal nexus between air transportation and economic growth in BRICS countries

Air transportation is important factor which helps to vibrate economic activities in any economy. This paper explore causal nexus between air transportation and economic growth in BRICS countries by using balanced panel date for the period 1993–2019. Numbers of air passengers and air freight are used as measures of air transportation. Panel time series econometric techniques coupled with panel Vector Error Correction Model and Dumitrescu and Hurlin tests are applied for causal analysis. Unidirectional long run causalities are found from air passengers and airfreight to economic growth in these countries. Likewise, one way short run causal relation from air transportation to economic growth is found in these countries. Based on the findings of this, there is economic significance of air transportation in these countries, hence, important policy implications are discussed.

BRICS-T Ülkelerinde Ekonomik Büyüme Üzerinde Yenilenebilir Enerji Tüketiminin Etkisi

In this study, it is aimed to investigate the effect of renewable energy consumption on economic growth in BRICS countries and Turkey. In this context, panel data analysis in the form of coefficient estimates and causality analysis was applied using annual data for the period 1990-2018. Within the scope of the determinants of economic growth, besides the renewable energy consumption variable which forms the basis of the study, the variables of capital accumulation, population, trade openness, foreign direct investments and non-renewable energy consumption are also used. According to the coefficient estimation results made with the fixed effects model, it has been determined that the increase in renewable energy consumption has negative and significant effects on economic growth. On the other hand, it has been determined that the increase in non-renewable energy consumption has a positive effect. In addition, it is among the findings that the increase in capital accumulation has a positive effect on economic growth and the increase in trade openness has a negative effect. Finally, Dumitrescu-Hurlin (2012) panel causality test results revealed that there is a unidirectional causality relationship from renewable energy consumption to economic growth. Accordingly, it was seen that the growth hypothesis was valid among the variables.

Does industrial eco-innovative development and economic growth affect environmental sustainability? New evidence from BRICS countries

This research aims to identify the periodical impact of industrial development, renewable energy, economic growth, and gross capital formation on environmental deterioration in BRICS countries. The analytical procedure is based on the annual data from 1995 to 2020. The selected econometric methods which are used to determine the relationship among exogenous and endogenous variables are panel unit-root tests for stationarity check, Johansen co-integration test for co-integration relationship, and FMOLS and quantile regression for long-run relationship. The empirical research findings confirm a significant positive association of environmental deterioration with industrial development, GDP, and GCF, while a significant negative relationship was observed between CO2 emission and renewable energy. The BRICS group of countries should be more focused on environmentally friendly technological development as they are concerned with economic growth. Renewable energy resources positively impact the environmental quality, so backward resources should be replaced with renewable energy resources to attain double impacts, that is, the reduction of CO2 emission with the reduction of oldfangled resources and increase in the environmental quality with the aggrandizement of renewable energy resources. Based on key findings and implications of the sectorial and whole economic growth of BRICS countries, this research suggests some policy implications for reducing toxic CO2 emissions and enhancing the quality of the environment.

Does investment in energy matter for economic growth? Evidence from BRICS countries

PurposeThis study aims to explore the impact of energy investment on economic growth. Specifically, the study investigates the impact of energy consumption, foreign investment, infrastructure development, tax revenue, human capital, international tourism revenue and trade volume on economic growth.Design/methodology/approachTo achieve the aim, the authors sample the 24-years (1996–2019) financial statistics of BRICS countries. Given the econometric recommendations supplemented by the Johnsen cointegration test, the current study uses the fully modified ordinary least square model for regression analysis and checks the robustness through robust least square model.FindingsThe statistical analysis shows a direct impact of energy investment on economic growth. In addition, the statistical results indicate a positive impact of energy consumption, foreign investment, infrastructure development, tax revenue, human capital and trade volume on economic growth.Research limitations/implicationsThe results present practical implications for policymakers regarding the adequate investment in energy production that can further promote the economic growth in BRICS countries. Policy officials should enhance the volume of renewable energy production, foreign investment and tax revenue. Additionally, it is equally suggested to policymakers regarding the development of infrastructure and human capital to ensure economic growth.Originality/valueThis study supplements the novel and robust evidence on investment in energy-leading economic growth.

Entrepreneurial Activity and Economic Growth of BRICS Countries: Retrospect and Prospects

Entrepreneurial activity is generally considered to be an important tool for improving economic growth through innovation and employment. The objective of the study was to determine the relationship among economic growth (GDP), entrepreneurial intention (EI), total early-stage entrepreneurial activity (TEA), established business ownership (EBO) rate and high job creation expectation (HJCE) rate. The research design followed a quantitative approach to annual secondary data from 2014 to 2018 for the BRICS countries (Brazil, Russia, India, China and South Africa). The dynamic ordinary least squares model was used to test the relationship among variables. Results indicated that EI is a significant determinant for economic growth. The study added to the prior literature by confirming that EI drives economic growth which can be useful for the policymakers.

A REVIEW OF THE NEXUS BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN THE BRICS COUNTRIES

The study investigates the long run relationship and causal relationship between energy consumption and economic growth in the Brics countries during the period 1990 – 2013. The Pedroni panel co-integration method is applied to analyse the co-integration relationship among the variables. The causality relationship among the variables is analysed using Pair-wise Granger-causality technique. The study’s results reveal that there is a long run relationship between economic growth, energy consumption, employment and trade openness in Brics countries. The research outcome further detected a unidirectional causality flowing from economic growth to energy consumption. This implies that the conservation policies that curb unnecessary loss in energy could be implemented in the Brics countries without adversely affecting economic growth.

Export Oriented Total Early Stage Entrepreneurial Activities and Economic Growth of BRICS Countries

Export Oriented Total Early Stage Entrepreneurial Activities and Economic Growth of BRICS Countries

Monetary Policy and Capital Flow Implications on Economic Growth in BRICS Countries

The study focuses on the BRICS economies for the duration 2001 up to 2015. The causality results revealed a unidirectional causality from foreign direct investment and broad money to total reserves, real GDP per capita and broad money to total reserves, broad money to total reserves and real interest rates as a percentage, foreign direct investment and commercial bank, debt stock, commercial bank, lending, foreign direct investments, real interest rates, and domestic credit provided by financial sector, domestic credit provided by financial sector, real GDP per capita.

Foreign direct investment, trade openness and economic growth in BRICS countries: evidences from panel data

In this paper we investigate the causal relationship between foreign direct investment, trade openness and gross domestic product in BRICS countries over the period of 1990–2018. We applied auto regressive distributed lag model to test cointegration and the Dumitrescu and Hurlin Granger causality tests. Empirical results show that FDI and trade openness have a positive impact on long-term economic growth. We also find there is a long-run relationship from both real effective exchange rate and gross capital formation to economic growth. The main results of causality analysis reveal that there is bidirectional causality from foreign direct investment to economic growth, trade openness to foreign direct investment, and unidirectional causality from trade openness to foreign direct investment.

Is Export Diversification or Export Specialization Responsible for Economic Growth in BRICS Countries?

ABSTRACT The study investigates whether export diversification or export specialization is more useful toward promoting economic growth in BRICS countries. We estimate a dynamic growth model augmented with trade activity to capture the diversification-concentration trade-off with economic growth for BRICS economies over the period of 1995 to 2017 using FMOLS, DOLS, and PMG estimators. Altogether, we find a positive (negative) relationship between export concentration (diversification) and economic growth in BRICS countries. Further analysis points to a semi-inverted U-shaped diversification schedule, of which the BRICS countries have crossed their “inflexion point” of development and need to re-specialize their export baskets.