Econometric Estimation of the Relationship between Unemployment Rate, Economic Growth, and Information and Communication Technology in BRICS Countries

The present paper addresses the issue of causal relationships between energy consumption and gross domestic product (GDP) in BRICS (Brazil, Russia, China, India, and South Africa) countries by employing panel data for 19 years from 1998 to 2016. The result indicates the existence of a long-run equilibrium relationship between unemployment rate, economic growth, and information and communication technology (ICT). Further, the study shows a bidirectional long-run causality between economic growth and ICT in BRICS countries. The study also indicates the presence of unidirectional causality in long-run as well as in short-run, which runs from ICT and unemployment rate to economic growth. The finding supports the thesis of the causal cyclical relationship between economic growth, ICT, and unemployment rate; therefore, the policy of development of ICT to accelerate growth and address the issue of unemployment rate may be implemented in BRICS countries.