Abstract:

The increase in the amount of goods and services produced in a given period in a country’s economy is expressed as growth. However, especially in developing countries, growth stability is largely needed to technological and investment goods imports, while export goods are generally composed of lower value-added products. This means that countries will follow a growth model with the current account deficits. In this study, the relationship between the Current Account Balance/GDP ratio and Growth data in the BRIC(S) countries, which is defined for the first time in 2001, was examined. The BRIC(S) countries have shown a rapid rise, both with their growth rates and their share of the world economy. The study aims to test the existence of the relationship between the 1994-2017 period and the second generation cointegration test and variables. Econometric findings didn't detect the cointegration relationship between Current Account Balance/GDP and growth data for the analysis period for BRICS countries. This result is thought to be caused both by the economic/financial crises during the analysis period and by the fact that the countries in the group have different foreign trade and income conditions.

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