37Received 25.06.2025. Revised 04.08.2025. Accepted 01.10.2025.
Acknowledgements. The article was prepared within the framework of the state assignment of the Lomonosov Moscow State University and as part of the research work of the Institute of Asian and African Studies, Lomonosov Moscow State University on the topic “Asian and African countries in the world economy and international economic relations”.
Abstract. The author’s calculations and models show that almost fourfold lead of the ten BRICS+ countries over the Group of Seven advanced economies (AEs) in terms of compound annual growth rate of GDP in 2000–2024 is largely due to their more than twofold superiority in the investment efficiency and fivefold lead in compound annual growth rate of total factor productivity (TFP). The success of the BRICS+ countries was on the whole provided by an increase in government effectiveness, the implementation of export-oriented industrialization (primarily in the largest Asian countries – China, India, Indonesia), significant progress in the growth of physical and human capital and innovative development. Largely due to the dynamic growth of China and India, which have generated almost 4/5 (3/5 and 1/5, respectively) of the BRICS+ GDP growth, the BRICS+ countries have overtaken the Group of Seven in terms of GDP (in PPP) by a third and in terms of industrial production by more than twice. They also surpassed the G7 in terms of the value of high-tech goods exports and reached over 2/5 and 1/2 of the level of the G7, respectively, in terms of TFP and human development index. Although beginning from the start of the 2010s the BRICS+ countries suffered from a slowdown in economic growth caused primarily, as calculations show, by a decline in the contribution of external demand from slowly growing AEs, which have been introducing stringent restrictions on exports from the BRICS+ and other developing countries, BRICS+ countries as a whole over the past 10–15 years have continued to outperform the Group of Seven in terms of investment efficiency by 3/4 and in terms of average annual growth rate of TFP four times.
Keywords: government effectiveness, export-oriented industrialization, innovative development
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