Applying a Panel Data Analysis to Determinants of Output in BRICS-T Countries

Abstract

Economic growth is one of the goals of economic policy. The study analyzes the determinants of output for the BRICS-T country group during the period 1992-2019. The results of the analysis show that the inflation variable has no effect on output in the long run. Looking at the effects of other variables shows that all variables are statistically significant both in the short and long term. According to the results of the analysis, the most effective variable in the short run is the patent applications variable. In the study, openness variable and inflation variable were taken as explanatory variables to see the effect of macroeconomic policy intervention. The results of the analysis made with the pooled mean group method show that the variable that affects most the output is trade openness. Furthermore, it has been observed that the inflation variable included in the model as a macroeconomic policy variable has an effect on output in the short run but not in the long run.