Determinants of Industrial Growth in BRICS and G7 Countries: A Comparative Analysis of Monetary, Fiscal and Scientific-Technological Factors

Valentin P. Vishnevsky, Artem A. Karpenko

Economic Research Institute, Donetsk, Russia

Abstract

Industrial growth remains a central driver of long-term economic development, yet its determinants vary significantly across countries with different levels of economic maturity. While existing studies often assume uniform growth mechanisms, this paper argues that the factors shaping industrial dynamics are structurally heterogeneous and context dependent. The study investigates the determinants of industrial growth in a comparative framework, focusing on BRICS and G7 economies as two competing geoeconomic blocs. The paper develops an empirical model that integrates monetary, fiscal, and scientific-technological factors, including money supply, tax burden, and research and development (R&D) expenditure. Using a balanced panel dataset covering the period 2000–2024, the analysis applies econometric techniques to identify the key drivers of industrial growth and to assess their differential impact across country groups. The results reveal substantial heterogeneity in growth determinants. Monetary factor emerges as the most consistent and significant drivers of industrial growth in both groups of countries. In contrast, the effect of taxation appears ambiguous and varies depending on institutional and macroeconomic conditions. The impact of R&D expenditure is found to be conditional: it contributes positively to industrial growth in advanced economies, while its effect is weaker or statistically insignificant in emerging economies, reflecting differences in innovation capacity and institutional maturity. The study contributes to the literature by providing a geoeconomic perspective on industrial growth and by demonstrating the importance of integrated analysis of financial and real-sector drivers. The findings have certain policy implications, suggesting that industrial development strategies should be tailored to country-specific conditions and that strengthening scientific and technological capacity is essential for sustainable growth.

Keywords

industrial development; determinants of industrial growth; comparative analysis; technological development; industrial policy; BRICS; G7.

JEL classification

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Acknowledgements

The study was funded by a grant from the Russian Science Foundation (RSF), project № 25-18-20606, https://rscf.ru/project/25-18-20606/

About Authors

Valentin Pavlovich Vishnevsky

Doctor of Economics, Professor, Chief Researcher, Economic Research Institute, Donetsk, Russia (283048, Donetsk, Universitetskaya street, 77); ORCID https://orcid.org/0000-0002-8539-0444 e-mail: vvishn@mail.ru

Artem Andreevich Karpenko

Post=Graduate Student, Leading Economist, Department of Financial and Economic Research, Economic Research Institute, Donetsk, Russia (283048, Donetsk, Universitetskaya street, 77); ORCID https://orcid.org/0009-0003-5907-7299 e-mail: pinbin@rambler.ru

For citation

Vishnevsky, V.P., Karpenko, A.A. (2026). Determinants of Industrial Growth in BRICS and G7 Countries: A Comparative Analysis of Monetary, Fiscal and Scientific-Technological Factors. Journal of Applied Economic Research, Vol. 25, No. 2, 424-449. https://doi.org/10.15826/vestnik.2026.25.2.014

Article info

Received March 14, 2026; Revised April 1, 2026; Accepted April 3, 2026.

DOI: http://dx.doi.org/10.15826/vestnik.2026.25.2.014

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