Determinants of industrial growth in BRICS and G7 Countries: A statistical study

Abstract

Subject. The role of industry in the modern world, the industrial revolution, the formation of competing political blocs. Objectives. Quantitative analysis of the determinants of industrial growth for countries of two major blocs (BRICS, G7). Identifying the priority determinants of industrial growth for Russia. Methods. Mathematical analysis tools were applied. Results. Overall, the broad money supply had a consistently positive effect on industrial production growth. Spending on research and development was the most significant positive factor in China and the US, and significantly positive in the G7 countries. In the BRICS countries, there was a positive and statistically significant link between industrial output and government spending on education. Conclusions. Based on the results of the analysis, it was concluded that it makes sense to use a dual approach. In Russia, within industrial policy, it is important to take into account the specifics of the determinants typical for the BRICS countries, where stimulating monetary policy plays a key role, and to look to the development models of China and the USA, where the leading role is played by the science and technology factor.