Abstract
Aim: The current research is conducted to evaluate the impact of inflation on poverty considering the case of the BRIC economies. The BRIC economies are the countries which include Brazil, Russia, India and China. The poverty and inflation is considered to be the worldwide issue and the BRIC countries has also been indicated to face such issues.
Method: The research is conducted using the quantitative research design. The data collection method used in this study is the secondary data where the data has been taken from the World Development Indicators for the period of 2000-2020 for the four BRIC countries. Since the data is panel including time series and different cross sections, hence, panel data regression has been applied where the GLS regression has been considered to be most appropriate considering the diagnostic issues in the data set.
Introduction
Inflation and poverty are two serious challenges of the BRIC countries – Brazil, Russia, India, and China – countries that occupy a great deal of attention in the contemporary world economy (Das and Chatterjee , 2019). These nations, though realizes economic growth at high rates, faces high inflation which makes poverty levels worse.Brazil inflation rates always lead to an increase in the cost of living, thus more and more people are being pushed to the poverty brinks and Russia’s current economic up and down and its prices that have gone high affects the low income earners(Liefert et al.,2019). India and China have relatively young populations and growing middle classes; however, both bear high levels of poverty that are likely to be worsened by inflation as it reduces purchasing power and increases the inequality gap (Kanbur et al.,2021).
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