beta-Convergence of Real Per Capita GDP in BRICS Economies

In the recent times, the emerging markets have been playing a crucial role because they have greater potential in terms of economic growth and investment opportunities. Brazil, Russia, India, China and South Africa (BRICS) are the five major emerging markets in the world economy. These economies have their own characteristics in the development of their economies. The process of convergence is essential to understand the growth of an economy. This paper attempts to examine whether or not any convergence is seen in BRICS nations. The empirical results of this study showed that there exists a beta-convergence in BRICS nations during the period 1990-2015 at a rate of 0.32percent. However, the rates of convergence vary before 2001 (1.63 percent) and after 2001(0.29 percent). The sigma convergence was tested to know the dispersion among the BRICS economies. It was observed that the existence of sigma convergence in BRICS economies for the period 1990-2000 and 2008-2015 with a divergence during the period 2000-2008. This study shows that the BRICS economies are eventually converging at varying rates.