Economic Growth In BRICS Countries Research Articles

Relationship between Oil Price, Inflation, and Economic Growth in BRICS Countries: Panel Cointegration Analysis

Relationship between Oil Price, Inflation, and Economic Growth in BRICS Countries: Panel Cointegration Analysis

How do Macroeconomic Conditions Affect GDP? (BRICS Case Study)

One of the international institutions in the spotlight is BRICS. Because the countries incorporated in it (Brazil, Russia, India, China, and South Africa) have a fairly high income. Thus, the purpose of this study is to see what factors contribute to economic growth in BRICS countries. The method in this study is Fully Modified Ordinary Least Square (FMOLS). By using a variable of investment, labor force, and electrical energy consumption. Based on the results of the study, there is a positive influence on BRICS revenue.

Influence of Logistics Performance on Economic Growth in BRICS Countries

Influence of Logistics Performance on Economic Growth in BRICS Countries

Transport as a basis for development of mutual trade and economic growth of BRICS countries

The article deals with a new perspective on increasing logistics connectivity of BRICS countries through development of transport routes. The typology of routes was proposed for the first time as a result of activities of the Subgroup for Transport and Logistics of the BRICS Business Council and summarized in the Guide of BRICS Transport Routes. Descriptions of main parameters of the routes as well as barriers to their development are presented in the article. The value of research lies in the preparation of recommendations to overcome barriers to development of these routes, which will create conditions for the growth of mutual trade and economic growth of BRICS countries.

The nexus between economic growth and conditional exchange rate volatility: evidence from emerging economies

PurposeThe purpose of this paper was to examine the nexus between conditional exchange rate volatility and economic growth in BRICS countries. Further, the dynamic causation between economic growth and exchange rate volatility is also examined.Design/methodology/approachWe employed three techniques, namely, dynamic panel models, static panel models and Dumitrescu and Hurlin (DH) panel causality test to examine the economic growth–conditional exchange rate volatility nexus in BRICS countries.FindingsThe overall results showed that conditional exchange rate volatility has a negative and significant effect on economic growth. Interestingly, the results showed that whenever the exchange rate volatility exceeds the 0–1.54 range, the economic growth of BRICS is reduced, on average, by 5%. Further, the results of the causality test reconciled with that of ARDL wherein unidirectional causality from exchange rate volatility, exports, labour force and gross capital formation to economic growth was found.Research limitations/implicationsThe urgent recommendation is to develop and align fiscal, monetary, trade and exchange rate policies, either through creating a common currency region or through coordinated measures to offset volatility and trade risks in the long run. Further, to offset the impact of excessive exchange rate changes, BRICS economies can set up currency hedging systems, implement temporary capital controls during periods of extreme volatility or create currency swap agreements with other nations or regions. Last, but not least, investment and labour policies that are coherent and well-coordinated can support market stabilisation, promote investment and increase worker productivity and job prospects.Originality/valueResearchers hold contrasting views regarding the effect of exchange rate volatility on economic growth. Some researchers claim that exchange rate volatility reduces growth, and several shreds of empirical evidence claim that lower exchange rate volatility is linked with an increase in economic growth, at least in the short run. However, the challenge lies in establishing the optimal range beyond which exchange rate volatility becomes detrimental to economic growth. The present study contributes to this aspect by seeking to identify the optimal spectrum beyond which excessive shifts in exchange rate volatility negatively affect economic growth, or endeavors to define the acceptable spectrum within which these fluctuations actually boost growth. To the best of our knowledge, this study is the first to analyse the given research area. The present study used a dummy variable technique to capture the impact of permissible exchange rate band on the economic growth.

Exploring the Nexus Link of Foreign Direct Investment Inflows and Openness on Economic Growth: Evidence from BRICS Economies

This study aims to investigate how Foreign direct investment (FDI) and trade openness influenced economic growth in BRICS countries from 1990 to 2022, using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (System-GMM) methods. Our findings show that these two variables boost economic growth by 0.172, 0.021, 0.291, and 0.072%, respectively. Additionally, the results indicate that BRICS countries have demonstrated greater resilience in terms of FDI and trade before and after the COVID-19 pandemic and the Russia-Ukraine war, underscoring the effectiveness of their investment and trade policies in maintaining economic growth amidst global disruptions.

The Relationship Banking Stability, Exchange Rate, Foreign Direct Investment and Economic Growth in BRICS Countries: A Panel Data Evidence

The Relationship Banking Stability, Exchange Rate, Foreign Direct Investment and Economic Growth in BRICS Countries: A Panel Data Evidence

Exploring the Linkage Between Energy Consumption and Economic Growth in BRICS Countries Through Disaggregated Analysis

Exploring the Linkage Between Energy Consumption and Economic Growth in BRICS Countries Through Disaggregated Analysis

Dynamic Approach to Study Relationship Among Carbon Dioxide Emissions, Urbanization, and Economic Growth in BRICS Countries

Dynamic Approach to Study Relationship Among Carbon Dioxide Emissions, Urbanization, and Economic Growth in BRICS Countries

Corruption and Economic Growth in BRICS Countries

Corruption and Economic Growth in BRICS Countries

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

The research of individual macroeconomic effects of the impact of innovative entrepreneurship on economic growth in BRICS countries

The research of individual macroeconomic effects of the impact of innovative entrepreneurship on economic growth in BRICS countries

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.