Growing up, Bric by Bric

In 2013, Brazil, Russia, India, China, and South Africa, or the BRICS, represented almost 3 billion people, with a combined nominal GDP of $16.039 trillion....

Barro (1991) and Fischer (1993) et al made an analysis about macroeconomic determinants of economic growth in which he examined that macroeconomic factors are important determinants of growth and, in turn, growth has a great effect on income distribution.

Earlier studies evaluated that income inequality first increases and later decreases with the average level of income. However, Barro and Fischer concluded that there is no evidence of a strong relationship between income level and income inequality.


Blejer and Guerrero (1988) came up with the evidence that underemployment, inflation and government expenditure are strongly regressive, while a depreciation of the exchange rates tends to reduce inequality....

Penrose (1963) undertook a study and concluded that it is capital that plays an important role in the success of the manufacturing sector, and the ability of the company to raise capital depends on its entrepreneurial ability.

If the entrepreneur can create confidence on the part of financial institutions, the firm can easily avail credit. Schatz (1964) saw the importance of capital from a different perspective. He said that it is not capital but viable projects that lead to success.

From 'Impact of Inflation on Per-Capita Income in Emerging Economies: Evidence from Brics Nations', Network Intelligence Studies