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Economic Growth and Socioeconomic Sustainability in BRICS Countries: A Vector Error Correction Modeling Approach

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  • Olawumi Dele Awolusi

Abstract

A major problem to the BRICS goal of achieving sustainable economic growth for members is the increasing level of socioeconomic inequality in the bloc. Consequently, the purpose of this study is to understand the influence of economic growth on socio-economic sustainability in the BRICS countries, using a yearly dataset from 1990 to 2019. A multivariate co-integration technique by Johansen and Juselius and Granger causality test were used to establish the relationships. Findings confirmed co-integration and short-run causal relationships. The most interesting results were the negative influence of economic growth on socio-economic inequality, tacit support for the resource curse hypothesis. The paper concluded that a common policy option was not possible and that for the block to pursue its economic prosperity goals without compromising individual countries' needs for socioeconomic sustainability, varied policy options were inevitable. The policy implications and recommendations are straightforward: the radical legal basis for the transition from natural resource export, as well as, sweeping regulation for the sustainable usage of natural resources protection, strict penalties on violations of environment-related laws and policies to enhance, general country-wide support. In addition, there may be an urgent need to define the active role of NGOs and other independent institutions in promoting socioeconomic equality (sustainability) practices and concepts at both local and national levels, enhanced social programs; market development, Integration of existing policies and creation of societal culture. Consequently, to the best of the researcher’s knowledge, no study has investigated comprehensibly (along with multiple determinants) the sustainability of growth policy options within BRICS with an aim to proposing socioeconomic sustainability and growth policy options.

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  • Olawumi Dele Awolusi, 2021. "Economic Growth and Socioeconomic Sustainability in BRICS Countries: A Vector Error Correction Modeling Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 13(3), pages 1-23.
    • Handle: RePEc:rnd:arjebs:v:13:y:2021:i:3:p:1-23
    DOI: 10.22610/jebs.v13i3(J).3122
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    Cited by:

    1. Peter Fofuh & Olawumi Dele Awolusi, 2021. "Corporate Social Responsibility in Cameroon: Practices and Environmental Impact," Journal of Education and Vocational Research, AMH International, vol. 12(1), pages 1-18.
    2. Oluwafemi Aladejuyigbe & Olawumi Dele Awolusi, 2021. "Global Energy Poverty: Nigeria as a Case Study," Information Management and Business Review, AMH International, vol. 13(3), pages 14-29.
    3. Adrien Fariala & Olawumi Dele Awolusi, 2021. "An assessment of Key Success Factors for Construction Projects in the Democratic Republic of Congo," Information Management and Business Review, AMH International, vol. 13(2), pages 16-34.
    4. Olawumi Dele Awolusi, 2022. "Education and Economic Growth in the Economic Community of West African States (ECOWAS)," Journal of Education and Vocational Research, AMH International, vol. 13(1), pages 6-20.
    5. Olawumi Dele Awolusi & Shirley Shamen Jayakody, 2022. "Exploring the Impact of Human Resource Management Practices on Employee's Retention: Evidence from the Food and Beverage Industry in the State of Qatar," Journal of Social and Development Sciences, AMH International, vol. 12(4), pages 39-58.
    6. Abraham Ansu Kanneh & Olawumi Dele Awolusi, 2021. "Staff Assignment Rotation and Project Sustainability in South Sudan," Journal of Education and Vocational Research, AMH International, vol. 12(1), pages 38-56.

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