BRICS Journal of Economics 1(4): 6-23, doi: 10.38050/2712-7508-2020-1-4-2
Quantitative dynamics of intra-BRICS trade
Mohd Nayyer Rahman, Zeenat Fatima, Nida RahmanCorresponding author: Mohd Rahman ( nayyer49@gmail.com ) © Mohd Rahman, Zeenat Fatima, Nida Rahman. This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Citation:
Rahman MN, Fatima Z, Rahman N (2020) Quantitative dynamics of intra-BRICS trade. BRICS Journal of Economics 1(4): 6-23. https://doi.org/10.38050/2712-7508-2020-1-4-2 |  |
Abstract
The study uses an augmented gravity model to analyse intra-BRICS trade flows and the potential for establishing economic cooperation. It examines trade relations between BRICS with the help of the gravity model of international trade. Panel data from 2000 to 2017 were reviewed for bloc analysis of 20 trade partners. The analysis of the intra-BRICS trade flows is based on the Heckscher-Ohlin model. The results obtained confirm that the intra-BRICS trade relations have a sound positive impact on economic performance in these countries. Market size and economic index have a beneficial effect on the intra-BRICS trade flows. Market size is very elastic to trade, while trade tariffs and taxes within BRICS are manageable. Hence, the intra-BRICS trade has the potential to create strong economic ties within the member countries, and cooperation between the BRICS countries can have a significant influence on the globalisation of the world economy.
Keywords
BRICS, gravity, trade, Heckscher-Ohlin model, Linder hypothesis.