ECONOMIC GROWTH EFFECT OF COMPETITIVENESS: THE CASE OF BRICS-T COUNTRIES

Abstract

Globalization and technological developments have brought an intense competition for developed and developing countries in order to get a share from the increasing world trade. Countries have come to use their economic, political and social advantages more in providing economic growth processes. In this framework, while developed countries try to maintain their current positions, developing and underdeveloped countries try to gain a place for themselves in the global world and close the distance with developed countries by trying to increase their competitive power. The meaning of providing competitiveness within the scope of economic growth includes providing a better standard of living as a result of increasing the welfare to a certain level by increasing individuals and social income. Determining the impact of middle-income countries' competitive power on economic growth, examining in which areas their competitive power is high and in which areas low, is of great importance in terms of making necessary improvements. Therefore, the effects of competitiveness and its determinants on economic growth have been increasingly discussed in recent years and are subject to various studies. From this point of view, the purpose of the study is to reveal the effects of competition on growth for the BRICS-T countries, a group of developing countries, with the help of panel cointegration analysis. In the panel, it was concluded that a 1% increase in the global competition index variable in the long term would lead to a 6.1% increase in the GDP variable. A positive significant relationship was determined. Also, bi-directional causality has been determined between growth and competition.