Total views : 299
Macroeconomic Dynamics on Rural and Urban Household Consumption Divide in BRICS Nations: A comparative study
Objectives: Consumption as a whole in an economy is a function of income. In other words the household aggregate consumption in an economy largely depends on its Income. This study examines basically the consumption pattern at rural and urban level in BRICS nations. Methodology and Analysis: The study also evaluates the influence and relationship of macroeconomic variables on rural and urban consumption. For the purpose of the study, World Development Indicators (WDI) data from World Bank is used. The time series data of BRICS nations for a period from 1991-2014, on rural and urban consumption, and its relationship with variables like, Gross National Income (GNI), Industrial Production Rate (IPR), and Inflation Rate (IR), Bank Credit (BC), Bank Lending Interest Rate (BLIR) are analysed using Multiple Regression model and Co-integration analysis. Findings: From the above analysis it may be observed that there is divergence in the rural and urban household final consumption in BRICS nations before and after becoming as a group. There exists inequality in the influence of macroeconomic variables and their relationship between BRICS nations. Applications/Improvements: The analysis gives scope for further study of consumption pattern in other regions and can be improved by adding other influencing variables.
Co-Integration JEL Classification: B22, C55, E21, E31, E43, Macroeconomic Variables, Multiple Regression Model.
- Holly A. Bell, status of the BRICs: An analysis of growth factor. International Research Journal of Finance and Economics. Euro Journals Publishing, Inc. Available from: http://www.eurojournals.com/finance.html
- BRICS countries background, key facts, news, and original articles. Available from: http://globalsherpa.org/bric-countries-brics/
- Basu T, Barik D, Arokiasamy P. Demographic determinants of economic growth in brics and selected developed countries. Presented in 27th IUSSP International Population Conference; 2013 Aug. p. 1–237.
- Vijayakumar, Sridharan P, Rao KCS. Determinants of FDI in BRICS countries: A panel analysis. International Journal of Business science and Applied Management. 2010; 5(3):1–13.
- Naude W, Szirmai A, Laropa A. Industrialization lessons from BRICKS: A comparative analysis. 2013 Aug.
- Chakravarthi P. Micro-finance: A study on BRICKS countries. 2015 Jul; 3(7):75–82.
- Tacoli C. Rural-urban interactions: A guide to literature. 1998 Apr; 10(1):147–66.
- Oscar JM. Vazquez E, da Sila JB. Socioeconomic inequities and mortality trends in BRICKS. 2014 Apr; 92:405–12.
- Nicolas MF. Forecasting the future: The BRICKS and the China model. International Strategic Organization Journal of Turkish weekly. 2011 Mar.
- Venkatesh N. Rise of BRICKS economy and its impact on Global stock markets. 2013 Feb; 2(1):1–11.
- Ghosh J, Havlik P, Ribeiro MP. Models of BRICKS economic development and challenges for EU competitiveness. Vienna Institute for International Economic Studies; 2009 Dec.
- McGranahan G, Martine G. Urban growth in emerging economics: Lessons from the BRICKS. Routledge; 2014. p. 288.
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.