The Impact of Economic Globalization On Economic Growth in BRICS Countries

Razita Salsabilah; Rifki Khoirudin; Uswatun Khasanah

doi:10.30651/blc.v23i2.31219

Authors

Razita Salsabilah Faculty of Economics and Business, Universitas Ahmad Dahlan, Indonesia
Rifki Khoirudin Faculty of Economics and Business, Universitas Ahmad Dahlan, Indonesia
Uswatun Khasanah Faculty of Economics and Business, Universitas Ahmad Dahlan, Indonesia

DOI:

https://doi.org/10.30651/blc.v23i2.31219

Keywords:

Globalization, Economic Growth, Trade Openness

Abstract

This research attempts to investigate the contribution of economic globalization on the growth of the economy in BRICS countries over the period 2010–2023. Economic globalization is proxied by several macroeconomic indicators, namely exchange rates, Foreign Direct Investment (FDI), foreign exchange reserves, inflation, and trade openness. The study utilizes panel data from nine countries, namely Brazil, Russia, India, China, South Africa, the United Arab Emirates, Ethiopia, Iran, and Indonesia. The empirical analysis employs a panel data regression model using the Seemingly Unrelated Regression (SUR) approach, which accounts for potential cross-sectional dependence among countries. The empirical results reveal that exchange rates, FDI, and inflation exert a positive and statistically significant effect on economic growth. In contrast, foreign exchange reserves and trade openness do not have an effect on economic growth. These findings indicate that the impact of economic globalization is heterogeneous across countries and is contingent upon macroeconomic stability as well as country-specific structural characteristics

Author Biography

Rifki Khoirudin, Faculty of Economics and Business, Universitas Ahmad Dahlan, Indonesia

Ekonomi Pembangunan

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