Economic Growth, Decent Work and Misery Nexus in BRICS Countries

Abstract

This study empirically examines the impact of economic growth and decent work on the misery index in BRICS economies between 2000 and 2022. The data used in this study is extracted from the World Bank Indicators (WBI). ADF unit root test is used to test for stationarity of the variables; the variables were cointegrated of the different orders, I (O) and I (I). As a result of this, ARDL adopted an approach to meet the study's objectives. The results indicated that economic growth and decent work in BRICS countries have a negative relationship with the misery index in both the short and long run. For example, the study found that a 1% increase in GDP in the short run would cause the misery index to fall by 4.8% and by 14.6% in the short and long run respectively. In addition, if decent work increases by 1% in the short run, the misery level falls by 6.7% and 48% in the short and long run respectively. Other control variables that were included in this study show that the exchange rate, corruption perception index, and poverty index have a positive relationship with the misery index in the BRICS. Therefore, the study recommended that BRICS governments improve the status of decent work and increase economic growth, which will help reduce misery. They also need to focus on maintaining governance issues, which will reduce corruption, institutional quality, and government effectiveness. This will also help their countries minimize the level of misery