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DIAS Technology Review

The Institute has a unique distinction of publishing a bi-annual International journal DIAS Technology Review – The International Journal for Business and IT. The Editorial Board comprises of...

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Vol. 16 No. 2 (2020)

Articles 32th Edition of DTR Oct 2019 – Mar 2020
DOI 10.65301/dias.2020.16.2.7

Coherence of Growth & Inflation in BRICS: ARDL Bound TestApproach

Authors
DR
Dr. Kirti Khanna

Asst. Professor, Delhi Institute of Advanced Studies, Rohini, Delhi
27 Views
27 Downloads
Published 2020-03-30
Abstract

ABSTRACT
Purpose: The present study deals with the link between economic growth and inflation for BRICS nations. Methodology: The study applied autoregressive distributed lag model (ARDL) for long term relationship and granger causality test to check the direction of short term and long-term causal relationship.


Findings: After employing different statistical and econometric measures, the findings reveal that BRICS has significant relationship in terms of inflation (CPI) and economic growth (GDP). The study found different types of causal relationships in long run and short run as well. The ARDL cointegration approach also revealed the long run bond between these two variables for BRICS nations. It is also suggested that being a regional grouping BRICS must work for economic development and cooperation in Trade and Tariff with effective policies. Cumulative sum of squares (CUSUMSQ) also organized the stability and goodness of the model for shortrun and long run as well. Value: The study offers long term equipoise relationships of selected variables in the context of BRICS nations for 28 years (1991-2018). The study is an effort to identify short run and long run causal effects along with ARDL testing of cointegration

Keywords
ARDL, BRICS, Economic growth, GDB Inflation, Time series..
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Dr. Kirti Khanna . (2020). Coherence of Growth & Inflation in BRICS: ARDL Bound TestApproach. DIAS Technology Review, 16(2).
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