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Business cycle accounting of the BRIC economies

Chakraborty, Suparna, Otsu, Keisuke (2013) Business cycle accounting of the BRIC economies. The B.E. Journal of Macroeconomics, 13 (1). pp. 381-413. ISSN 2194-6116. (doi:10.1515/bejm-2012-0129) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:44329)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1515/bejm-2012-0129

Abstract

Drawing upon the experiences of Brazil, Russia, India and China (BRIC), we apply the Business Cycle Accounting methodology to study the phenomenon of rapid economic growth. We document that while efficiency wedges do contribute in a large part to growth, especially in Brazil and Russia, there is an increasing importance of investment wedges especially in the late 2000s, noted in China and India. The results are typically related to the stages of development with Brazil and Russia coming off a recession in the 1990s to grow in the 2000s, while India and China were on a comparatively stable growth path. Our results suggest, at least for the BRICs examined, that while efficiency wedges play a major role in jump-starting recovery, investment wedges are equally important for sustaining the recovery. Relating wedge patterns to institutional and financial reforms, we find that financial market developments and effective governance in BRICs in the last decade are consistent with improvements in investment and efficiency wedges that led to growth.

Item Type: Article
DOI/Identification number: 10.1515/bejm-2012-0129
Uncontrolled keywords: BRIC; business cycle accounting; efficiency; investment adjustment costs; market frictions; trend shocks
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: K. Otsu
Date Deposited: 12 Nov 2014 09:43 UTC
Last Modified: 29 May 2019 13:27 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/44329 (The current URI for this page, for reference purposes)
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