Abstract:
This paper examines the causal relationship between the economic growth and research output of the BRICS countries (i.e., Brazil, Russia, India, China, and South Africa) for the period 1981–2011. Essentially this study looks at the human quality demonstrated by the production of knowledge (published papers) and how it gets affected and influences the economic growth of these countries. BRICS are among the fastest growing emerging economies that are grouped together in this study. Using panel causality analysis techniques, we account for cross-section dependency and heterogeneity among them. Our empirical results support no causality in any direction between research papers as a percentage share to the world and economic growth for all the BRICS, with the exception of India, for which the feedback hypothesis is confirmed. Our findings provide important policy implications for research policies and strategies for BRICS countries.
