The relationship between competitiveness and growth: An econometric analysis on BRICS-T countries

Competitiveness is considered as the main element that determines the welfare level of a country. With globalization, competitiveness, which is accepted as an indicator of economic and social performance, has become a criterion of target and success. Today, it is possible to say that an increasing and measurable competitiveness is gaining importance. Economic growth, on the other hand, reflects the expansion of production possibilities and consequently increases in real product per capita. At the end of economic growth, effects such as improvements in life conditions, changes, and redistribution of income are observed. Increasing competition accelerates economic growth. Changes in economic growth are driving the global market and the developments in the global market have positive contributions on growth. In this context, it is possible to say that economic growth is an indicator of competitiveness. In this study, the relationship between competitiveness and economic growth was examined with the help of an econometric analysis. According to the analysis results obtained, growth increases positively as competition increases. As a result of the causality analysis, for all countries in the BRICS-T country group, bidirectional causality has been obtained. The historical values of the global competition index affect the current GDP values, at the same time the historical values of the GDP variable affect the current competition index values. Keywords: Competition, Competitiveness, Economic Growth, BRICS-T