What Shapes Economic Growth in BRICS? Exploring the Role of Institutional Quality and Trade Openness

Megha Chhabra, Arun Giri and Arya Kumar

Economic Papers, 2023, vol. 42, issue 4, 347-365

Abstract: Prior research has identified outward‐oriented policies as a far superior approach to achieving economic growth. Whilst trade openness determines economic growth in the short run, institutional quality is critical to long‐term viability. However, the direct and indirect effects of institutions have been understudied, particularly for the Brazil, Russia, India, China and South Africa. This study addresses this issue by estimating long‐run and short‐run elasticities using the system GMM and pooled mean group models and identifying its country‐specific impact using the fully modified ordinary least square model. According to the findings, trade and institutions are only short‐run complements of economic growth. In the long run, however, the lack of good governance limits the positive impact of trade openness.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1759-3441.12378

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:econpa:v:42:y:2023:i:4:p:347-365

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0812-0439

Access Statistics for this article

Economic Papers is currently edited by Professor Guay Lim

More articles in Economic Papers from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().