Title: Integration effects in exports induced economic growth: evidence from extended ELG model in BRICS

Authors: T.G. Saji

Addresses: Associate Professor Finance, School of Management Studies, Cochin University of Science & Technology, Kochi 22, Kerala, India

Abstract: This research aims to assess the competitiveness of BRICS nations and to investigate its effects on their export performance and economic growth. Our fixed-effects panel regression procedure proves the competitiveness effects on export performance, where the influence of terms of trade and relative profitability of exports are dominant. The export-led-growth (ELG) model seems to be valid in estimating BRICS growth and the inclusion of inward foreign direct investment (FDI) and real effective exchange rate (REER) variables in the model as additional predictors enhance the robustness in forecasting. The study suggests that the multifaceted and interlinked dimensions of competitiveness are crucial to further enhancement in competitiveness and to ensure the even spread of growth and development in the partnership.

Keywords: BRICS; Brazil; Russia; India; China; and South Africa; ELG model; competitiveness; panel regression; foreign direct investments.

DOI: 10.1504/IJTGM.2021.115713

International Journal of Trade and Global Markets, 2021 Vol.14 No.3, pp.304 - 324

Received: 10 Jul 2019
Accepted: 25 Sep 2019
Published online: 18 Jun 2021 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article