DYNAMICS OF INDUSTRIAL PRODUCTION IN BRICS COUNTRIES

Year 2016, Volume: 8 Issue: 1, 1 - 25, 01.06.2016

Adebayo Augustine Kutu Harold Ngalawa

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.

Keywords

Dynamics of Industrial Production, BRICS countries, P-ARDL

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