Structural Breakage and Long Term Cointegration Analysis for Economic Growth in G-7, BRICS and MATIK Countries (1962-2012)

In this article, long term data is analysed for the total growth of the world economy and the growth of developed (G7) and of the rapid developing economies. The total population of BRICS and MATIK countries generate 49,16% of the the world’s population, and their economic size generates 26,46% of total world economy. Especially, the basic hypotheses of this study is that BRICS+MATIK countries whose economic shares slowly increase are compared with G-7 and the global economy, i) help of BRICS+MATIK economies rapidly increase the growth rate of global economy: ii) BRICS+MATIK economies cause structural breakage in the growth rate of world economy. In this way, it may be possible that the help of G-7 is compared with the help of BRICS+MATIK economies for the growth of world economy. The study uses the annual data for the 1962-2012 periods. The most important finding is that BRICS+MATIK economies affect the growth rate of world economy, and it constantly increases according to the help of G-7 in post-cold war era. The result has been acquired that World, G-7, and BRICS+MATIK economies cointegrated in the long term.