CO-Integration among the Stock Markets of Brics Economies

Abstract

The acronym BRIC was first used in 2001 by Goldman Sachs in their Global Economics Paper, "The World Needs Better Economic BRICs” on the basis of econometric analyses projecting that the economies of Brazil, Russia, India and China would individually and collectively occupy far greater economic space and would be amongst the world’s largest economies in the next 50 years or so. "Normally developing economies are dominated by US or Japan. It is found that the empirical evidence suggest that some countries are dominated by the US, some are dominated by Japan, and the remaining countries are dominated by neither during the time period investigated.” (Ghosh, Saidi and Johnson, 1999)

BRICS bring together five major developing economies viz., Brazil, Russia, India, China and South Africa respectively. According to IMF, GDP Growth rate of these five economies are Brazil at -3.59%, Russia at -0.25%, India at 6.8%, China at 6.7%, South Africa at 0.28%. BRICS economies are emerging and developing economies. They are monitored by all developing economies.