Title: Causal nexus between sustainable economic growth and economic and institutional determinants: an advanced panel data estimation for BRICS countries

Authors: Priya Gupta

Addresses: Department of Finance, Lal Bahadur Shastri Institute of Management, Plot No. 11/7, Sector-11, Dwarka, New Delhi-110075, India

Abstract: The objective of this study is to find the causal nexus between sustainable economic growth and its determinants (both economic and institutional) in the context of the five most emerging countries of the world i.e., BRICS for a period of 17 years (2002-2018). In the presence of unit root problem and cross-sectional dependence, Kao (1999) cointegration test followed by Dumitrescu and Hurlin (2012) Granger non-causality test with the bootstrap procedure has been applied to examine the direction of causality. Additionally, FMOLS and DOLS techniques have been executed to examine the impact of all the determinants on sustainable economic growth in the long run. Lastly, the study also discusses the augmented mean group estimates (Eberhardt and Teal, 2010) to analyse the significant determinants impacting sustainable economic growth country wise. The results of the study are consistent with the available empirical literature for all the countries.

Keywords: sustainable growth; BRICS; cross-sectional dependence; CSD; FMOLS and DOLS; cointegration; Granger non-causality; emerging economies; panel data.

DOI: 10.1504/IJEPEE.2021.118982

International Journal of Economic Policy in Emerging Economies, 2021 Vol.14 No.5/6, pp.596 - 625

Received: 01 Jun 2020
Accepted: 14 Oct 2020

Published online: 09 Nov 2021 *

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