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Rising Inequality or Regional Strength? Investigating Income Growth Divergence among BRICS Nations

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  • Ncwadi, Ronney

    (Nelson Mandela University, Gqeberha, South Africa)

Abstract

This paper examines income growth dynamics in BRICS economies (1991-2022) using panel data and random-effects estimation. It tests the income convergence hypothesis by analyzing GDP per capita growth and key drivers such as investment, FDI, technology, trade, and education expenditure. Contrary to ?-convergence theory, findings show income divergence: higher-income BRICS countries, especially China and India, grow faster than their lower-income peers. The study quantifies divergence speed and illustrates widening income gaps, underscoring the need for structural reforms, innovation-driven investment, and regional cooperation. It also calls for further research accounting for cross-sectional dependence and country- specific heterogeneity.

Suggested Citation

  • Ncwadi, Ronney, 2025. "Rising Inequality or Regional Strength? Investigating Income Growth Divergence among BRICS Nations," International Journal of Economics and Financial Issues, Econjournals, vol. 15(6), pages 412-424, October.
    • Handle: RePEc:eco:journ1:v:15:y:2025:i:6:id:20595
    DOI: 10.32479/ijefi.20595
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