The impact of emerging economies on the global power balance: A panel data analysis on BRICS-T countries

In the 21st century, countries participating in the global economy and emerging markets have been playing a significant role in reshaping economic power balances. In this context, BRICS-T countries (Brazil, Russia, India, China, South Africa, and Turkey) have become important actors in the world economy with their high economic growth, increasing trade volume, and global and regional investments. The study analyses the macroeconomic data and economic growth of the BRICS-T countries between 2000 and 2022. The data set was obtained from international institutions such as the World Bank, KOF Swiss Economic Institute and The Heritage Foundation. Two separate panel causality test models were created for the analysis of the data. In the first model, (KOF-PGI) was taken as the dependent variable; the effects of per capita national income, the ratio of R & D to GDP, trade openness, exports, the ratio of foreign direct investment to GDP, the ratio of gross capital formation to GDP, and the economic freedom index on this index were analysed. In the second model, per capita income was used as the dependent variable, and the effects of other institutional indicators on economic growth were examined. For the analyses in the study, the direction of the relationships between the variables was determined using Juodis-Karavias-Sarafidis and Dumitrescu-Hurlin panel Granger causality tests. The data has been evaluated separately for each country. Country-specific policy recommendations have been developed based on these evaluations. The analysis emphasised the need for comprehensive development strategies based not only on macroeconomic indicators but also on institutional structure, the effectiveness of technology investments, and integration with the global system. The findings contribute to the literature and aim to contribute to the sustainable growth policies of emerging markets.