DYNAMICS OF INDUSTRIAL PRODUCTION IN BRICS COUNTRIES

This paper investigates the long run and short run dynamics between industrialproductionand factors affecting production in the Emerging Market EconomiesofBrazil, Russia, India, China and South Africa(BRICS). Using the Chudik andPesaran (2013)P-ARDL model and monthly data from1994:01– 2013:12, thestudyfindsevidence of a cointegrating relationship between industrial productionand selected variables. It is further observed that capital, labour, per capita incomeand exportshave a positive long run impact on industrial production in theBRICS.Acurrency appreciation(an increase in the exchange rate), however, hasa negative impact on industrial production.In the short run, it is foundthatimports, exports, exchange rates, labour, capital and per capita incomesignificantly affect industrial productio