Using common features to investigate common growth cycles for brics countries

Abstract

This paper examines the short and long-term co-movement of large emerging market economies - the BRICS countries - by applying the econometric techniques and the tests proposed in the common-feature literature. Despite their dissimilarities, given the rising trade linkages among the BRICS over the last 20 years, one should expect their cycles to be synchronized. Our empirical findings fully support this hypothesis. The evidence holds also for the co-movement between the BRICS and developed economies, the US and the Eurozone, which may reflect the effects of globalization. We believe that our results contribute to give an interesting insight into the short-term dynamics of the largest emerging market economies.