Can Human Capital Drive Sustainable International Trade? Evidence from BRICS Countries

Chang-Hwan Choi (), Xuan Zhou and Jung-O Ko
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Chang-Hwan Choi: Department of International Trade, Dankook University, Yongin-si 16890, Gyeonggi-do, Republic of Korea
Xuan Zhou: Department of International Trade, Dankook University, Yongin-si 16890, Gyeonggi-do, Republic of Korea
Jung-O Ko: Department of Global Business, Chonnam National University, Yeosu-si 59626, Jeollanam-do, Republic of Korea

Sustainability, 2023, vol. 16, issue 1, 1-11

Abstract: This paper examines the causal relationship between human capital and economic factors in BRICS countries using a panel vector autoregressive model and data from 1997 to 2020. The economic factors considered include foreign direct investment (FDI), imports, exports, and gross domestic product (GDP). The study conducts a comparative analysis of Brazil, India, China, Russia, and South Africa by adopting a vector autoregressive (VAR) model. The findings indicate a bidirectional causality between human capital and FDI in China, while a unidirectional causality from FDI to human capital is observed in Brazil. Moreover, a unidirectional causality exists from human capital to GDP in Brazil, Russia, India, and South Africa. Additionally, a unidirectional causality is found from human capital to imports and exports in South Africa. Overall, the results suggest the pivotal role of human capital in achieving sustainable economic development in BRICS countries. Policymakers should ensure sustained investment in human capital, focusing on economic growth, FDI, and international trade.

Keywords: BRICS; comparative study; human capital; GDP; FDI; import; export; VAR (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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