Towards the Sustainable Nexus of Higher Economic Complexity Index, Lower Carbon Emissions and Accelerated Economic Growth:

Document Type : Original Article

Authors

1 Economics Management sciences MSA

2 October University for Modern Sciences and Arts MSA

3 Department of Economics, Modern Sciences and Arts University, Giza, Egypt

Abstract

Abstract BRICS economies market potential stood at around 3.27 billion individuals in 2023 contributing  to 18% of the global exports, yet it remains to be questionable whether their exports have attained the aspired level of technological complexity towards accelerating economic growth. Hence, the main objective of the paper is to estimate how would higher levels of technological advancement envisaged by the Economic Complexity Index (ECI) slash down carbon emissions and bolster economic growth for BRICS economies and other potential members like Egypt. The paper’s main theoretical framework is supported by the endogenous, neo classical growth theories and Kuznets curve to articulate the linkages between ECI, carbon emissions and GDP growth. The empirical dataset covers a time frame of 20 years from [2000- 2021] and the analysis’ aims to differentiate between short run and long run behavior of ECI and carbon emissions on affecting economic growth. The analysis employs a battery of econometric techniques suitable for panel data to include stationarity tests, panel cointegration, fixed effects, cross section dependence models, cointegration and ARDL (Autoregressive Distributed Lag). The main results stand out to support the theoretical intuition and indicate that higher sophistication and technological content in manufactures maximizes the complexity and value-added content of BRICS country’s exports  and reduces carbon emissions.

Keywords

Files

Share

How to cite

Statistics