Two Decades of BRICS – An Assessment of the performance
Description
In this work, we investigated BRICS countries in the last two decades, observing a set of explanatory variables for per-capita income growth, the ability to convert capital stock growth into labor productivity growth, and the convergence in productivity and living standards. We used per capita income (PcINC) as the target variable, human capital (HC), capital stock per capita (CNpC), and labor productivity (LP) as independent explanatory variables. Measured at p-value < 0.05. Used Adjusted R-squared, and ANOVA F-statistic. Our findings are that: 1) LP as an explanatory variable for per-capita income still holds for all the countries, but for some, HC and capital stock emerged as statistically significant; 2) China had the best performance in per capita income growth, followed by India and Russia. Brazil and South Africa performed poorly; 3) China and India had at least, three times more capital stock growth than the others, South Africa and Brazil doubled their capital stock, and Russia seems not to have met the target; 4) LP performance closely explains the per capita income growth for all the countries, nevertheless, Brazil and South Africa were not able to convert HC growth into LP growth; 5) Russia was the best in converting investments in capital stock into LP; 6) In LP and per capita income matters, Russia showed to be far higher than the others, however, there is evidence of a convergence trend of the other four in TFP and welfare.
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Steps to reproduce
We worked with observational data for 20 years – from 2000 to 2019. We composed a panel database with t=20 years, and N= 5 entities, with a total (N x T) of 100 observations. The database for our gathering and calculations was the Penn-World Table (PWT) 10.0, in June 2023, when conducting this research. We worked with observational data for 20 years – from 2000 to 2019. We composed a panel database with t=20 years, and N= 5 entities, with a total (N x T) of 100 observations. When conducting this research, the database for our gathering and calculations was the Penn-World Table (PWT) 10.0, in June 2023.