In the short run, it is found that imports, exports, exchange rates, labour, capital and per capita income significantly affect industrial production.
📌 3 Key Takeaways
🎯
Objective & Hypothesis:This paper investigates the long run and short run dynamics between industrial production and factors affecting production in the Emerging Market Economies of Brazil, Russia, India, China and South Africa (BRICS).
📊
Key Findings & Data:Using the Chudik and Pesaran (2013) P-ARDL model and monthly data from 1994:01 – 2013:12, the study finds evidence of a cointegrating relationship between industrial production and selected variables.
💡
Conclusion & Impact:In the short run, it is found that imports, exports, exchange rates, labour, capital and per capita income significantly affect industrial production.
🔬Design:Modeling & Simulation
📍Scope:2013 Verileri
⚙️Variables:Dynamics of Industrial Production · BRICS countries · P-ARDL
Abstract
This paper investigates the long run and short run dynamics between industrial production and factors affecting production in the Emerging Market Economies of Brazil, Russia, India, China and South Africa (BRICS). Using the Chudik and Pesaran (2013) P-ARDL model and monthly data from 1994:01 – 2013:12, the study finds evidence of a cointegrating relationship between industrial production and selected variables. It is further observed that capital, labour, per capita income and exports have a positive long run impact on industrial production in the BRICS. A currency appreciation (an increase in the exchange rate), however, has a negative impact on industrial production. In the short run, it is found that imports, exports, exchange rates, labour, capital and per capita income significantly affect industrial production.
KUTU, A. A., NGALAWA, H. (2016). DYNAMICS OF INDUSTRIAL PRODUCTION IN BRICS COUNTRIES. International Journal of Economics and Finance Studies, Cilt: 8 Sayı: 1, 1–25. https://ajindex.com/articles/993670
Abdullah, Norehan, and Hussin Abdullah. (2013) "Determinants of Fertility in Malaysia and Selected ASEAN Countries: The Panel ARDL approach." http://repo.uum.edu.my/id/eprint/12315.
Acemoglu, Daron, and James Robinson. (2012) “Why Nations fail: The Origins of Power, Prosperity, and Poverty.” Crown Business, New York. Akinmulegun, Sunday, Ojo. (2014) "Unemployment and Poverty Paradigm in Nigeria: Challenges and Prospect." International Journal of Management and Administrative Sciences (IJMAS) 2, no. 3, pp 16-23.
Al Mamun, Md, Kazi Sohog, and Ayesha Akhter. (2013) "A Dynamic Panel Analysis of the Financial Determinants of CSR in Bangladeshi Banking Industry." Asian Economic and Financial Review 3, no. 5, pp. 560-780.
Aldrighi, Dante Mendes, and Renato Perim Colistete. (2015) "Industrial Growth and Structural Change." Structural Change and Industrial Development in the BRICS, 162. Published by Oxford University Press,
Oxford-USA. Ali, Shahid, Somia Irum, and Asghar Ali. (2008) "Whether Fiscal Stance or Monetary Policy is Effective for Economic Growth in case of South Asian Countries?"The Pakistan Development Review, pp. 791-799.
Aradhna Aggarwal. (2014) “GDP Growth and Manufacturing: Experience of BRICS Countries and Lessons to be learned by Central Asia.” Wadhwani Foundation Policy Research Centre New Delhi Kazakhstan, Astana 1-2.
Arias, Maria A., and Yi Wen. (2015) "Trapped: Few Developing Countries Can Climb the Economic Ladder or Stay There." The Regional Economist, Oct 2015.
Ayres, Robert, and Vlasios Voudouris. (2014) "The Economic Growth Enigma: Capital, Labour and Useful Energy?" Energy Policy 64, pp. 16-28.
Baltagi, Badi. (2008) “Econometric analysis of panel data”. Fourth Edition. West Sussex: John Wely and Sons, Ltd. UK, pp. 13. Banerjee, Anindya, Juan Dolado, and Ricardo Mestre. (2008) "Error‐correction Mechanism Tests for Cointegration in a Single‐equation framework." Journal of Time Series Analysis 19, no. 3, pp. 267-283. Calderón, César, and Eduardo Levy Levy-Yeyati. (2009) "Zooming in: From Aggregate Volatility to Income distribution." World Bank Policy Research Working Paper Series, No. 4895. Chudik, Alexander, and M. Hashem Pesaran. (2013) "Large panel data models with cross-sectional dependence: a survey." CAFE Research Paper 13.15. Chun, Kwang Ho. (2014) “The BRICs superpower challenge: foreign and security policy analysis”. Ashgate Publishing, Ltd. Demetriades, Panicos, and David Fielding. (2012) "Information, institutions, and banking se