Latest Articles from BRICS Journal of Economics Latest 90 Articles from BRICS Journal of Economics https://brics-econ.arphahub.com/ Thu, 28 Mar 2024 23:13:35 +0200 Pensoft FeedCreator https://brics-econ.arphahub.com/i/logo.jpg Latest Articles from BRICS Journal of Economics https://brics-econ.arphahub.com/ Factors of consumer choice of music streaming services in Russia and China https://brics-econ.arphahub.com/article/112810/ BRICS Journal of Economics 4(4): 439-458

DOI: 10.3897/brics-econ.4.e112810

Authors: Sharko Elena, Bashkova Dariya

Abstract: The streaming music service is one of the most important elements of digital ecosystems. Subscriptions, pre-orders, and in-app track purchases are extremely valuable for developers of streaming services, who are interested in promoting them among users. Previous studies do not contain comparative analyses of consumer behaviour of music streaming services for users in different countries. The purpose of the study is to compare the factors of choice of Russian users and users from China. The study consists of in-depth interviews with Russian service employees, followed by a quantitative survey that helps to identify the main factors of choosing a music streaming service. We discovered differences in the significance of factors for Russian and Chinese users. Logistic regression analysis allowed us to identify a variety of choice factors with different significance for customers who use the service; in order to succeed, ecosystems including music streaming services should immerse themselves in the particularities of consumer behaviour in a certain country, taking into account the uniqueness of the music market.

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Research Article Fri, 22 Dec 2023 13:00:00 +0200
Low-carbon development of Russia: problems and prospects https://brics-econ.arphahub.com/article/112314/ BRICS Journal of Economics 4(4): 429-437

DOI: 10.3897/brics-econ.4.e112314

Authors: Nikonorov Sergey

Abstract: This publication presents the results of research aiming to study the possibilities of promoting measures that could help reduce the impact on climate by replacing fossil fuels with alternative, carbon-free (renewable) energy sources, and implementing technological innovations. The study examines long-term scenarios for greenhouse gas emissions in Russia and their implications for the environment, public health and other spheres. Based on the results of the analysis, it offers recommendations on possible strategies to mitigate the impact on climate over the periods up to 2030 and 2050. These recommendations can serve the purpose of designing policies that will contribute to the implementation of the international climate agreement adopted in December 2015 at the 21st Conference of the Parties to the UNFCCC in Paris.

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Research Article Fri, 22 Dec 2023 13:00:00 +0200
Why forest economy can become a driving force of the development of BRICS cooperaion https://brics-econ.arphahub.com/article/112531/ BRICS Journal of Economics 4(4): 411-422

DOI: 10.3897/brics-econ.4.e112531

Authors: Anton Pyzhev

Abstract: The changing global geopolitical and economic landscape generates growing interest in new strategic alliances among the world’s fastest growing economies. This is certainly true for the BRICS countries, whose importance for the contemporary world cannot be overestimated. As soon as the group begins to turn into a more institutionalized organization, the question of establishing closer and more numerous economic and social ties will arise. The paper analyzes the trends in the development of the forest economy in Brazil, Russia, India, China and South Africa over the past two decades. It assesses each country’s share in the global timber harvesting and its position on the international market for forest products. Accounting for slightly less than 1/3 of the global annual harvest, the BRICS countries have boosted production and export of their forest products in the XXI century. According to our calculations, only India and China’s production and export of sawn timber and wood panels increased tenfold. The paper examines conditions for turning the forest economy into one of the drivers of cooperation between the BRICS countries and the existing financial, political and environmental constraints. Such cooperation will be possible if there is sufficient demand for forestry products in BRICS; it will require measures to radically improve the logistics of trade between the countries, given their great mutual remoteness. The important role of the BRICS countries in the global forest economy can become an important factor in the further development of cooperation within the group, especially after the expansion expected in 2024.

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Research Article Fri, 22 Dec 2023 13:00:00 +0200
Navigating the Transition to Inclusive Online Learning in BRICS and Africa https://brics-econ.arphahub.com/article/114685/ BRICS Journal of Economics 4(4): 389-410

DOI: 10.3897/brics-econ.4.e114685

Authors: Chetty Krish

Abstract: In response to COVID-19 lockdowns, universities in Africa and BRICS nations swiftly transitioned from contact to online learning to maintain academic progress. This article explores critical questions these institutions must address to develop effective long-term online learning policies, rooted in Swartz’s (2022) Navigational Capacities framework. It highlights the risk of deepening digital inequalities if the limitations of emergency remote learning are overlooked. Focusing on the experiences of the BRICS, Ghana, Uganda, and Ethiopia, the article analyses their online learning approaches during 2020 and 2021 amidst the pandemic. This analysis, through the Navigational Capacities lens, emphasises addressing key challenges such as technology access, affordability, and digital skills. Many universities initially transferred traditional teaching methods to online platforms without a pedagogical redesign to optimise digital tools, underscoring a need for a strategic shift. Going forward, universities must understand the requirements of an effective long-term online learning programme, weighing the economic costs of such an approach. Crucially, universities across BRICS and the Global South must continue to share knowledge about these experiences as they develop policies which define an effective long-term online learning programme.

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Research Article Fri, 22 Dec 2023 13:00:00 +0200
Sports Mega Events and the BRICS Economies: A Brief Historical Overview https://brics-econ.arphahub.com/article/111951/ BRICS Journal of Economics 4(4): 369-388

DOI: 10.3897/brics-econ.4.e111951

Authors: Wray Vamplew

Abstract: This paper provides an historical overview of the involvement of BRICS nations in hosting sports mega-events since 1990. It draws upon published studies to `generalise about how the hosting experience affected the BRICS economies. A survey of bidding for some mega-events shows that BRICS nations were keen to hold them, especially when there was a change in hosting policy which encouraged developing nations to apply. Indeed it can be suggested that regular bidding built the events into BRICS nations development strategies in which hosting a sporting mega-event both demonstrated that the nations had developed sufficiently to spare the resources for such prestigious entertainments but also was a way of boosting further development through infrastructure improvements and the encouragement of tourism. Certainly many city politicians and influencers saw hosting a mega-event as a key to urban regeneration and modernisation. In most cases the events were sporting successes, but the economic story was one of exaggerated pre-event claims of potential benefits and seriously underestimated costs. A major issue was the lower level of the infrastructural base from which BRICS countries started compared to more developed economies. The funding of sporting mega events meant that resources had to be diverted from possible alternative uses such as health, education and housing.

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Research Article Fri, 22 Dec 2023 13:00:00 +0200
Approaches to the development of platform employment in the BRICS countries https://brics-econ.arphahub.com/article/113139/ BRICS Journal of Economics 4(3): 347-368

DOI: 10.3897/brics-econ.4.e113139

Authors: Olga Zolotina, Angelina Kosareva, Ekaterina Chernykh

Abstract: The main goal of the paper is to examine the process of development and institutionalization of platform employment. Using statistical data from national sources and international research organizations, the authors study the evolution of platform employment in China, India, Brazil and South Africa in comparison with the development of this type of employment in Russia and then create socio-demographic portraits of the each country’s platform workers, classify and systematize the national platform models and define specific characteristics of their formation and functioning. This is followed by the authors’ comments and recommendations concerning further development of platform employment in Russia which largely depends on the evolution of government regulation of this sphere.

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Research Article Wed, 22 Nov 2023 13:35:00 +0200
The Welcomed Rise of China: An overview of Beijing’s relations with Brazil and other BRICS countries https://brics-econ.arphahub.com/article/110895/ BRICS Journal of Economics 4(3): 335-346

DOI: 10.3897/brics-econ.4.e110895

Authors: Valdir Bezerra, Zizhen Lin

Abstract: Cooperation between China and Brazil based on similar principles of international affairs evolved not only in their long-lasting bilateral relations but also through their contacts with other members of the BRICS, a group of countries formed in 2009 whose tenets include the defense of a multipolar and more just world order. The former American National Security Advisor Zbigniew Brzezinski had foreseen the dangers for the US global hegemony that could arise from the coalition of dissatisfied powers; today it has become clear that China’s relations with Brazil and within BRICS play an essential role in the configuration of a Non-Western international system. The purpose of this article is to explore China’s political and economic rise based on its relations with Brazil and other BRICS countries, which have effectively formed an ‘anti-hegemonic association’ and a platform most suitable for democratization of international affairs. The results of our research demonstrate that the rise of China has been beneficial for both Brazil and other BRICS over many years due to China’s contribution to a new global configuration of power. The paper uses analytical and qualitative approaches to both economic data and political discourse related to China’s interactions with Brazil and inside BRICS.

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Research Article Mon, 16 Oct 2023 15:20:00 +0300
Russia as a country of BRICS: Issue of identification https://brics-econ.arphahub.com/article/98255/ BRICS Journal of Economics 4(3): 321-333

DOI: 10.3897/brics-econ.4.e98255

Authors: Petr Mozias

Abstract: The approach of development economics has been rarely used in the studies on the BRICS research agenda. This article is an attempt to fill this gap. According to development economics, the appearance of the BRICS association is fully justifiable, because large emerging economies have much in common. Russia is the most advanced country among the BRICS, even though some years ago it fell into the group of laggards in terms of economic growth, together with Brazil and South Africa. It may be partly explained by those countries’ adherence to neoclassical recipes of economic policy. It is believed, however, that national economic interests of all the five countries could be more effectively served by a combination of further pro-market reforms with public interventions to correct the inevitable market failures. That is why, for the Russian comparative advantages to be fully realized, the country should rely not so much on trade liberalization as on coordination among the BRICS governments in their actions aimed at trade and investment promotion.

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Research Article Tue, 12 Sep 2023 00:00:00 +0300
The features of logistics network structures and prospects for their transformation in the BRICS countries https://brics-econ.arphahub.com/article/109228/ BRICS Journal of Economics 4(3): 301-319

DOI: 10.3897/brics-econ.4.e109228

Authors: Arshad Mokhammad

Abstract: The ongoing global transformation processes have led to changes in logistics systems that are now being restructured at a new technological level. The formation of new inter-country groupings and the leap in the volume and quality of infrastructure have a key impact on logistics parameters; the increases in risk and uncertainty make it necessary to diversify supply capabilities and create reserve capacities in order to balance unforeseen situations. The paper first examines the formation of new logistics networks and diversification of existing ones using the evidence both from the BRICS countries, primarily Russia, India and China, and from candidates for accession to this organization; then, it analyses the prospects of their integration in the new geopolitical and technological environment. The study is based on the systematic approach, using comparative analysis and statistical methods; it aims to assess the prospects for cooperation between Eurasian members of BRICS in the field of logistics systems and to identify the national specifics of their financing, design and formation. The paper systematizes information on industry, maritime, air and land transport, paying special attention to the shipping of hydrocarbons and developing of latitudinal and meridional corridors on a new technological basis. It also gives an overview of the benefits gained from complex integrated initiatives and transformation of the logistics industry as a whole.

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Research Article Tue, 12 Sep 2023 00:00:00 +0300
Bargaining power, product differentiation, and currency patterns in intra-BRICS trade https://brics-econ.arphahub.com/article/102638/ BRICS Journal of Economics 4(3): 285-299

DOI: 10.3897/brics-econ.4.e102638

Authors: Gnidchenko Andrey

Abstract: The paper aims to model the currency structure of intra-BRICS trade using readily available data at the product-country level. The research is motivated by the existence of data availability problem that has arisen because the Bank of Russia does not publish data on invoicing currencies in a detailed breakdown by currency and partner. It involves the two factors that require only trade data: the index of trading partners’ bargaining power and the degree of product quality differentiation. First, I link the hypothetical model share of trade invoiced in the producer currency to the ratio of the bargaining powers of exporter and importer countries by logistic curves with different parameters; assuming that trade in homogeneous products with low quality differentiation is invoiced in vehicle currencies, I then compare the model structure of Russia’s intra-BRICS trade with the aggregated data, and choose the parameters of the logistic curve that provide the best fit. I use CEPII BACI database for 2019. The results show that the actual and the model invoicing currency structures for Russia’s intra-BRICS trade are very close for exports but differ for imports, which highlights the role of the importer’s foreign exchange reserves currency structure. The model share of Chinese renminbi in total intra-BRICS trade is about 47% and the model share of vehicle currencies is estimated at 38%. The long-term potential share of Chinese renminbi in total intra-BRICS trade may exceed 80% that makes it the strongest candidate for substituting vehicle currencies in intra-BRICS trade.

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Research Article Tue, 12 Sep 2023 00:00:00 +0300
China’s Capital Formation in the Volatile Time https://brics-econ.arphahub.com/article/105980/ BRICS Journal of Economics 4(2): 265-283

DOI: 10.3897/brics-econ.4.e105980

Authors: Leonid M. Grigoryev, Darya Zharonkina

Abstract: China’s capital formation is an important theme, which, however, so far received only limited attention of researchers. The purpose of this study is to explore the major characteristics of the uniquely high rate of capital formation, close to 45% of GDP, that for many years has supported growth and structural changes in China. Data show that the official plans to alter the GDP structure by shifting the focus from investment to domestic consumption have not materialized. The shifts in the structure of capital investments demonstrate the country’s modernization strategy and tactics, but they have not led to significant changes in the key macro proportions, so export remains crucial for economic growth and investments. Today, the country concentrates capital expenditures in machine industry and in the advanced branches of manufacturing. The real estate segment experiences financial difficulties, which may cause its GDP share to decline. Shifts in manufacturing investments reflect the focus of the Chinese authorities’ decision-making, as well as their reaction to market signals. Although some proportions and correlation coefficients between profits, revenues and investments by industry remained fairly stable for a long time, the turbulent years of 2020-2022 prompted both declines and revivals in industrial investments with a changed structure. This paper offers an analysis of large statistical material on the sectors of the Chinese economy including manufacturing, its dynamics and structure, thus creating a clearer picture of the Chinese industries’ investment behavior as a way to adapt to new trends or withstand various shocks. The work has its limitations since statistical evidence is available on a smaller set of indicators than that for many other market economies.

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Research Article Fri, 30 Jun 2023 18:06:00 +0300
Carbon Dioxide Emissions Reduction Efficiency and Growth Potential (A Case of Pakistan and China) https://brics-econ.arphahub.com/article/93805/ BRICS Journal of Economics 4(2): 243-263

DOI: 10.3897/brics-econ.4.e93805

Authors: Danial Zahid Shafique, Kexin Bi, Alina Steblyanskaya, Sajjad Hussain

Abstract: The current study undertakes an empirical investigation aiming to find out how ecological, economic and environmental factors, such as energy consumption, GDP growth rate, and ecological footprint per person, influence CO2 emission in the CPEC region. The study relies on the panel data series for Pakistan and China over the period of 1980-2030, because the year 2030 is the most probable time of the CPEC project completion. The forecasted values of the respective factors with possible influence of CPEC projects assisted the authors in gaining a clearer picture of their interrelationship. According to regression results, energy consumption and production have been significant positive determinants of CO2 emission, while energy intensity has had a considerable negative impact on this emission. Among economic factors, the dynamics of GDP, GPI, per capita income, HDI, unemployment rate, and GINI coefficient are found to have made a positive impact on CO2 emission; as to GDP growth, the regression unexpectedly showed its insignificant negative impact. Among ecological factors, the expenditures on environmental protection appear to be negative determinants of CO2 emission, while environmental footprint and costs of elimination of natural disasters positively impact the CO2 emission. The mediation analysis showed that the population growth would be the key factor of influence on CO2 emission. It is therefore recommended that, being a developing economy, Pakistan should reconsider its strategies towards CPEC projects, especially those involving coal energy production which may accelerate the CO2 emission in the country and lead to additional costs in terms of natural hazards and climate change.

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Research Article Fri, 30 Jun 2023 18:05:00 +0300
Factors determining participation of developing countries in global value chains https://brics-econ.arphahub.com/article/101915/ BRICS Journal of Economics 4(2): 225-242

DOI: 10.3897/brics-econ.4.e101915

Authors: Liudmila Chikhun, Igor Romanov

Abstract: The paper examines the key economic and institutional factors that determine the participation of developing countries in global value chains (GVCs). To assess the impact of a number of factors on the foreign value added in export of developing countries, an econometric model for 84 countries for the period 1999-2018 is used. Obtained results indicate that developing countries with higher per capita income, more developed manufacturing industry, more open economy, less administrative burden on business and those actively engaged in foreign direct investment (FDI) activities demonstrate higher upward participation in the GVCs. It is also shown that trade liberalization and investments in foreign production strengthen the positions of developing countries in the GVCs in the long term. Based on these findings, recommendations are formulated for the state policy of these countries in order to accelerate their integration into more complex stages of the GVCs.

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Research Article Fri, 30 Jun 2023 18:04:00 +0300
Impact of Financial Inclusion on Human Development Index: Special Reference to BRICS Countries https://brics-econ.arphahub.com/article/96288/ BRICS Journal of Economics 4(2): 209-223

DOI: 10.3897/brics-econ.4.e96288

Authors: Thakur Dev Pandey

Abstract: The BRICS countries are frequently referred to as “emerging economies”; they account for a sizable proportion of the global population and face issues such as poverty, income inequality, slow economic growth, gender inequality, and high unemployment rates. Policy measures are currently being considered and implemented in response to these difficulties. Previous studies suggest that greater financial inclusion has a positive effect on such countries’ development, hence its importance as a tool used to deal with the socioeconomic challenges faced by emerging economies. When we talk about “financial inclusion,” we are referring to the ease with which people can access and make use of basic financial services, such as savings accounts, credit cards, and insurance. In this paper, we use data from the Global Findex Database and the World Bank Database to create the Financial Inclusion (Finclusion) Index, which provides a comparative measure of financial access for different nations. The primary purpose of this paper is to evaluate the effect of financial inclusion on HDI in 105 countries; per capita income and gender development are also compared across BRICS countries. The study found that financial inclusion had a significant impact on human development in general and a positive effect on the development of women in particular. The result is valid for the BRICS countries, where financial inclusion has considerably boosted human development and is positively correlated with women empowerment.

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Research Article Fri, 30 Jun 2023 18:03:00 +0300
BRICS investment policy in contemporary environment https://brics-econ.arphahub.com/article/99251/ BRICS Journal of Economics 4(2): 193-208

DOI: 10.3897/brics-econ.4.e99251

Authors: Irina Yarygina, Lubov Krylova

Abstract: Contemporary instability of the global economy and the consequences of COVID-19 determine the search for new ways to ensure sustainable economic and financial development of any country. This is especially important for developing countries, BRICS in particular. One of the ways of meeting new challenges is to strengthen cooperation between partners, so the paper examines the BRICS countries’ investment policy, seeking to identify new areas of cooperation where harmonious investment could be most beneficial. The research uses comparative, logical, statistical and structural analysis with graphic visualization and interpretation of the obtained results. The authors have been first to identify contemporary investment opportunities for further cooperation within BRICS and to reveal their features in various areas, such as regulation, taxation, labor legislation, infrastructure development. The authors emphasize the necessity of the BRICS member countries’ investment co-operation in reaching the goals of sustainable development and outline the priority areas of investment showing that the BRICS should grant preferential treatment to strategic investments. The paper points out the need to expand the use of national currencies in dealing with green and infrastructure bonds issued to support the national economies and calls for increased participation of BRICS development banks and institutional investors of all forms of ownership in the processes of partnership cooperation.

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Research Article Fri, 30 Jun 2023 18:02:00 +0300
BRICS Countries’ Increasing Role in the world economy, Including Institutional Innovation https://brics-econ.arphahub.com/article/99451/ BRICS Journal of Economics 4(2): 173-191

DOI: 10.3897/brics-econ.4.e99451

Authors: Manmohan Agarwal, Sushil Kumar

Abstract: This paper seeks to determine whether the BRICS group has lived up to the expectations that their influence in international economic governance will increase. Stellar economic performance and the resulting well-being are important factors that may cause this influence to grow. However, there has been increasing recognition that welfare does not depend merely on income but on a broader set of indicators as exemplified by the Millennium Development Goals (MDGs) or the Sustainable Development Goals (SDGs). BRICS may increase their influence through their achievements on the social front and their soft power. Using simple statistical methods to examine their macroeconomic performance the paper found that only China and India had done well and lived up to the initial expectations. The social achievements of the BRICS have also been limited. The BRICS have sought to translate their dissatisfaction with the IMF and the World Bank into establishment of the New Development Bank (NDB) to provide loans for infrastructure projects and the Contingent Reserve Arrangement (CRA) to cover the needs for financing balance of payments deficits. The paper examines the working of these organizations to find out if they have been successful in meeting their objectives. The results of the analysis allows us to conclude that the NDB has been successful, unlike CRA, which proved to be ineffective.

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Research Article Fri, 30 Jun 2023 18:01:00 +0300
From Boom to Bust: A Study of China’s Economy in the Wake of COVID-19 Outbreak in H1 2020 https://brics-econ.arphahub.com/article/101050/ BRICS Journal of Economics 4(1): 147-171

DOI: 10.3897/brics-econ.4.e101050

Authors: Mohamad Zreik

Abstract: The purpose of this study is to examine the impact of the COVID-19 pandemic on China in terms of both health and economic crises and to provide an in-depth analysis of the government’s economic policies in response to the crisis. To achieve this, the study analyzes data on the spread and progression of the COVID-19 pandemic in China and the data on the Chinese economy and government initiatives to stimulate economic growth. The study draws on relevant literature to contextualize the effects of past crises on the global economy. The study found that the COVID-19 pandemic had a significant impact on the Chinese economy, resulting in the first annual decline in growth since 1976. The government’s response to the crisis focused on job security rather than economic growth. The study also revealed that the government implemented various measures to stimulate the economy, such as tax relief, loans to small and medium-sized enterprises, and investments in infrastructure projects. The study provides insight into the effectiveness of the government’s economic policies in response to the crisis and offers important scientific findings on the impact of the COVID-19 pandemic on China’s economy and public health. The study highlights the challenges faced by China in responding to the crisis and provides valuable lessons for other countries. The study’s contribution lies in its thorough analysis of the Chinese case and its potential to serve as a model for other economies in the post-pandemic era.

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Research Article Wed, 5 Apr 2023 18:01:00 +0300
Education in the BRICS countries and the likely impact of the COVID-19 pandemic https://brics-econ.arphahub.com/article/100736/ BRICS Journal of Economics 4(1): 131-146

DOI: 10.3897/brics-econ.4.e100736

Authors: C. C. Wolhuter

Abstract: One of the key features of the contemporary world is the project of massive global education expansion, driven by high expectations related to the role of education as the most powerful instrument available to humanity to meet the challenges of the contemporary era. However, three quarters of a century after the beginning of this global education expansion project, it is still far from proper completion, facing immense challenges in terms of quality, inclusiveness and equality. Moreover, the COVID-19 pandemic aggravated and accentuated the deficiencies of this project. The present position paper claims that the experience of the BRICS education systems during the COVID-19 pandemic presents a valuable lesson for the rest of the world. The BRICS countries were able to provide equitable quality education for all, and also ensure that education contributed to their economic development and economic development of the Global South at large. This paper argues that the pandemic presents an opportunity and a compelling need to restructure education globally, developing education models suitable for the Global South. The constellation of BRICS countries, as the vanguard of the Global South, has a crucial role to play.

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Research Article Wed, 5 Apr 2023 18:01:00 +0300
Does BRICS present multilateral bifurcation as an alternative to the West during the pandemic and global inflation crisis era? https://brics-econ.arphahub.com/article/99454/ BRICS Journal of Economics 4(1): 117-129

DOI: 10.3897/brics-econ.4.e99454

Authors: Gizem Aslanyürek

Abstract: This paper gives an overview of cooperative activities between the BRICS countries and their internal projections. It also analyzes the BRICS engagement as a new, alternative global institution through the global governance and multilateralism policies of BRICS. It asserts that BRICS cooperation has presented its global political and economic policies and demonstrated the tendency to prove its global goal as more than a regional organization but a new worldwide alternative to the West-oriented global institutions and cooperation. While it analyzes the objectives of the internal and international projects and coordination of the BRICS, it also examines the impact of the Covid-19 pandemic process, ongoing global inflation, and the challenges that occur dependently as a case study. The paper analyzes the texts of BRICS Summit reports and investigates the issue of whether BRICS will create a new bifurcation (Wallerstein) and drive the global power transition by challenging the rigid Western-based world order through its discourse of creating multilateral and multi-polar global system based on inclusiveness and the spirit of openness (BRICS Summit, 2022). On the other hand, there is the reality of BRICS that still face serious challenges, particularly after the pandemic period. This paper contributes to BRICS’ multilateralism and inclusiveness discourse by introducing bifurcation theory as a theoretical frame to determine the vision and the action of the BRICS group despite many challenges.

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Research Article Wed, 5 Apr 2023 18:01:00 +0300
Post-Covid Brazil and the new government: Economy and foreign policy https://brics-econ.arphahub.com/article/99448/ BRICS Journal of Economics 4(1): 97-116

DOI: 10.3897/brics-econ.4.e99448

Authors: Carlos Eduardo Carvalho, Tatiana Massaroli de Melo, William Daldegan

Abstract: The Brazilian economy has more continuity than ruptures in the end of the pandemic as well over former Bolsonaro’s government closure. Positive economic indicators since 2021 were followed by a further slowdown at the end of 2022, keeping the pattern of weak growth moments in the midst of a near stagnation trend. The export of goods based on natural resources remains a positive factor as in the previous decades, though with the same problems of low leverage capacity of productivity diffusion to other sectors. The public sector faces great difficulties when trying to promote growth and modernization because of fiscal rigidity aggravated by mandatory expenses and varied resistance to cutting spending and redirecting expenses caused by conflicts that are hard to coordinate. After a brief presentation of the economic indicators at the end of 2022, the paper highlights three elements that condition the economic policy in the post-Covid Brazil: the rigidity of fiscal framework; export industry performance and deindustrialization; resumption of the foreign policy that will allow the country to benefit from the international scenario.

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Research Article Fri, 31 Mar 2023 17:30:00 +0300
COVID-19 impact on India: Challenges and Opportunities https://brics-econ.arphahub.com/article/99441/ BRICS Journal of Economics 4(1): 75-95

DOI: 10.3897/brics-econ.4.e99441

Authors: Srinivas Junuguru, Akanksha Singh

Abstract: The world is still witnessing adverse effects of the COVID-19 pandemic that is shattering the entire world. The virus ripped apart the global economy like never before leading to low growth rates in the largest economies of China, the United States (US), Japan, India, and in many others. The world has come out of the great lockdown, but there is no sign of recovery and the COVID-19 threat is still looming. The pandemic hit the global economy so hard that it will probably take nearly a decade to restore the normality worldwide. Reports show that China is getting cornered by multinational companies, many of which have signalled intention of shifting their production base from China and are now in search for alternative locations. This research paper explores the effects of the pandemic on the global society, with particular focus on India and the measures taken by its government in response to pandemic-related challenges. The paper claims that if India manoeuvres its foreign policy by properly balancing its domestic and external priorities, it will play a most prominent role in the emerging international order.

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Research Article Fri, 31 Mar 2023 17:30:00 +0300
The Impact of Covid-19 on youth employment in Russia https://brics-econ.arphahub.com/article/99406/ BRICS Journal of Economics 4(1): 53-74

DOI: 10.3897/brics-econ.4.e99406

Authors: Olga Zolotina, Tatiana Razumova

Abstract: Young people have enormous potential for labour market development of every country. The purpose of this research is to examine the ways in which the Covid-pandemic affected youth employment in Russia by assessing the relevant indicators of the past decade and describing the relationship between the crucial characteristics of three subcategories of youth and the changes in employment patterns in response to the pandemic shock. It also identifies the specific factors that determined the transformation of the Russian labour market during the pandemic. The results can provide policy-makers with guidance on how to cope with youth employment risks and help the young people assess their prospects for employment and manage their career paths.

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Research Article Fri, 31 Mar 2023 17:30:00 +0300
Why we need a multilateralism that works and what is the role of the BRICS: lessons from the recent Covid-19 pandemic https://brics-econ.arphahub.com/article/99323/ BRICS Journal of Economics 4(1): 35-51

DOI: 10.3897/brics-econ.4.e99323

Authors: Francesco Petrone

Abstract: After the dramatic event which humanity has experienced, the Covid-19 pandemic, innumerable questions arise concerning the future of the international system. The pandemic highlighted many contradictions within this system: first of all, the logic of divisions covered by the dichotomy “the West and the rest” has proved to be obsolete as it often generated conflicting positions on the issues that concern the whole humanity, such as the distribution of vaccines. It has also demonstrated the need to seek out ways to improve cooperation and design effective multilateral policies, especially given the other global challenges, many of which will require swift action: we primarily refer to the climate change and, more generally, to the reform of global governance (GG) towards a more democratic system. In this context, the role of the BRICS is fundamental for several reasons. First, the BRICS have repeatedly demanded greater democratization of GG, and their actions seem to be aimed at creating more inclusive decision-making processes in international forums, such as the United Nations and the G20. Furthermore, the BRICS are a group of countries fighting for greater multilateralism, especially at the financial level. Finally, owing to their economic and political weight and the size of the population, the BRICS countries are crucial for building the foundations of the future, more inclusive, international relations as they may guarantee the multilateral character of the reformed GG. As a group, they represent a sustainable partnership that has great potential for laying the foundations of a different type of global architecture. In this paper we discuss the strategic role that the BRICS could play in the future of multilateralism despite the existing limitations. We do this through the lens of the global development theory that shows the importance of sharing common practices and narratives and overcoming divergences between the global North and South, especially in a post-Covid perspective.

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Research Article Fri, 31 Mar 2023 17:30:00 +0300
BRICS and the USA: Labor and Employment Support During and After the COVID-19 Pandemic https://brics-econ.arphahub.com/article/99262/ BRICS Journal of Economics 4(1): 9-34

DOI: 10.3897/brics-econ.4.e99262

Authors: Maria Beletskaya, Elena Zotova

Abstract: This article concerns labor and employment support policies undertaken by national governments in 2020-2022, during the global COVID-19 pandemic. It is focused on the experience of the BRICS countries but also highlights the labor and employment support policies in the USA, a country with one of the largest economies and advanced economic development. The COVID-19 outbreak has posed unprecedented challenges for all countries. The key objectives of all governments were to save human lives and prevent the spread of the infection. While the containment measures used by different countries were mostly similar, the programs and policies aiming to support workers were country-specific. The authors examine two types of labor support measures aimed at mitigation of the COVID-19 consequences: direct cash transfers to sustain workers’ incomes and business support activities. The analysis reveals that the success of these measures could depend, first, on how timely they were, second, whether they were in line with the long-term objectives in labour market development and, third, on the quality of governments’ collaboration with businesses and trade unions. The COVID-19 pandemic has cast a long shadow. As the BRICS countries plan to focus their labor and employment policies on high-quality jobs, human-centered development, inclusion and protection of workers’ rights they should address the consequences of COVID-19 together with other challenges, such as technological transformation, climate change and demographic issues.

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Research Article Fri, 31 Mar 2023 17:30:00 +0300
Editorial for Special Issue On COVID-19: Its Impact on BRICS Economies https://brics-econ.arphahub.com/article/103662/ BRICS Journal of Economics 4(1): 1-7

DOI: 10.3897/brics-econ.4.e103662

Authors: Badar Alam Iqbal

Abstract: Need to be written 

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Editorial Fri, 31 Mar 2023 17:30:00 +0300
Belt and Road Initiative for environmental economic development: A Case Study of cooperation between China and Russia in transport sector https://brics-econ.arphahub.com/article/91318/ BRICS Journal of Economics 3(4): 299-316

DOI: 10.3897/brics-econ.3.e91318

Authors: Liu Boyu, Olga Efimova, Maksim Vasiev, Wang Qian

Abstract: The impact of climate change and COVID-19 pandemic on the global economy is indeed powerful; this determines particular relevance of low-carbon economy and environment-oriented development, drawing considerable public attention to these issues. China and Russia as the two largest neighboring countries have a centuries-old history of relationship and fruitful cooperation. Transport industry plays an essential role in promoting trade and economic development between the two countries and its expansion may also contribute to achieving sustainable development and carbon neutrality goals. This paper aims to assess the prospects of cooperation between China and Russia in transport policy with regard to the environmental component through the study of the environment-oriented processes using the transregional theory, and Kuznetsov’ transregional model of interaction between Russia and China in the transport sector. The results of the present research show that China and Russia can be expected to further strengthen their cooperation in the field of transport infrastructure building and renovating roads railways, ports, and border crossings to expand traffic capacity and improve efficiency — all this with a focus on new green technologies.

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Research Article Fri, 30 Dec 2022 17:00:00 +0200
How Russia’s trade with China influences carbon dioxide emissions in Russian regions https://brics-econ.arphahub.com/article/91170/ BRICS Journal of Economics 3(4): 271-298

DOI: 10.3897/brics-econ.3.e91170

Authors: Alina Steblyanskaya, Artem Denisov, Sergey Bobylev, Svetalna Razmanova

Abstract: The Sino-Russian partnership has become one of the hottest issues in contemporary international politics. Significantly, the highest potential is in the movement of both countries to Carbon Neutrality. China pursues the goal to reach its carbon peak by 2030, aiming to achieve net-zero carbon dioxide emissions. The Russian government is also involved in new programs concerning emissions reduction. The two countries plan to collaborate on a new level of responsibility and transregional interconnection. The paper aims to analyze the influence of Russia’s trade with China on carbon dioxide emissions in Russian regions. The authors present a review of carbon dioxide emissions between the two countries, explore the processes of trade in several categories of products and outline forward forecast tendencies. The paper uses complicated forecasting modeling in Python to assess the prospects of trade collaboration between Russia and China untill 2030. It makes forecasts of the volumes of carbon dioxide emissions and environmental trends till 2030. The research results show that the highest levels of emissions are observed in the industries “Mineral products”, “Chemical products” and “Animal husbandry and fishing products and services”, while “Wood works and furniture”, and “Agriculture products and services” produce considerably fewer emissions.

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Research Article Fri, 30 Dec 2022 17:00:00 +0200
The Relationship Between Environmental Taxes, Technological Innovation and Corporate Financial Performance: a Heterogeneous Analysis of Micro-Evidence from China https://brics-econ.arphahub.com/article/91590/ BRICS Journal of Economics 3(4): 249-270

DOI: 10.3897/brics-econ.3.e91590

Authors: Ding Xiaowei, Maria Petrovskaya

Abstract: As a formal environmental regulation, environmental tax is important for the green upgrading of industrial structure. In order to explore the impact mechanism of environmental tax on corporate financial performance, this paper constructs a difference-difference (DID) model with two-way fixed effects based on financial data of Chinese A-share manufacturing listed companies from 2015 to 2019. We have found that environmental taxes contribute directly and significantly to the improvement of financial performance and that technological innovation, in some degree, produces mediating effect. Financing constraints not only negatively moderate the relationship between environmental taxes and technological innovation; they also inhibit the impact of technological innovation on financial performance and have a moderate mediating effect as part of the indirect influence. In the heterogeneity analysis, the direct effect is more significant among State-owned enterprises (SOEs) and eastern enterprises, and the moderating effect of financing constraints is more significant among non-SOEs and eastern enterprises. This paper advances the understanding of economic consequences of environmental tax levies from the perspective of property and regional heterogeneity. It provides empirical evidence in support of the applicability of Porter’s hypothesis in China and makes suggestions for the optimization of environmental policy and improvement of financial performance of enterprises.

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Research Article Fri, 23 Dec 2022 11:16:00 +0200
Knowledge and Understanding of Ecological Civilization: A Chinese Perspective https://brics-econ.arphahub.com/article/94450/ BRICS Journal of Economics 3(4): 231-247

DOI: 10.3897/brics-econ.3.e94450

Authors: Jun Yan, Vladimir Bocharnikov

Abstract: The idea of a socialist ecological civilization with Chinese characteristics is based on the latest provisions of Marxist theory applied to China’s current ecological environment. Responsible attitude contributes to the continuing formation of people’s awareness of the need for ecological protection, which in turn leads to the expansion of ecological practical activities; this shows that the idea of socialist ecological civilization with Chinese characteristics has very high theoretical and practical value. China’s ecological civilization has created an advanced national development strategy and now it is gradually putting it into practice. China is actively transforming its economic development mode, reducing energy and material consumption, limiting obsolete production capacity, insisting on collaborative innovation, and promoting sustainable economic development. Under the guidance of Xi Jinping’s ecological civilization thought, the society is consciously striving to respect and protect nature. In this paper, the authors analyze China’s Ecological Civilization from the historical point of view, explain the conceptual framework of China’ Ecological Civilization Thoughts and describe the primary steps of China’s ecological civilization development.

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Research Article Fri, 23 Dec 2022 11:16:00 +0200
Return of Coal: A Short Visit or a Long Stay? https://brics-econ.arphahub.com/article/94712/ BRICS Journal of Economics 3(4): 209-229

DOI: 10.3897/brics-econ.3.e94712

Authors: Dzhanneta Medzhidova

Abstract: Despite the existence of global targets to slow the pace of climate change, coal remains one of the most commonly used fuels that accounts for over 25% of the global energy supply and consumption. Multiple factors explain why coal is still widely used: its relatively low prices, availability in developing countries, low transportation costs and path dependence, i.e. the existing energy infrastructure. Coal consumption in developing (non-OECD) countries has been rising thanks to the processes in India and China but in 2021, however, it increased in the OECD countries as well. The uneven and often atypical post-COVID-19 recovery driven by manufacturing created disruptions in energy markets with high and volatile prices of coal’s main substitute - natural gas. The first in history and hence unexpected slowdown in the RES supply in 2021 added to the reversal of trends exactly at the time of the COP26 in Glasgow. The goal of our study is to examine the coal markets in the new complex environment determined by both economic and political factors: high commodity prices, rising inflation, decelerating economic growth, and sanctions against exporters. In this paper we analyze the major trends before 2020, the current processes, and their implications for the future in the context of choice between economic development and energy transition including the issue of stranded assets and their possible reopening.

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Research Article Fri, 23 Dec 2022 11:16:00 +0200
Green Economy for Nature conservation: New paradigm for the Future https://brics-econ.arphahub.com/article/98753/ BRICS Journal of Economics 3(4): 203-207

DOI: 10.3897/brics-econ.3.e98753

Authors: Alina Steblyanskaya, Sergey Bobylev, Yan Jun

Abstract: -

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Editorial Fri, 23 Dec 2022 11:16:00 +0200
Drivers for making in-app purchases in mobile games by users in emerging countries https://brics-econ.arphahub.com/article/97857/ BRICS Journal of Economics 3(3): 183-201

DOI: 10.3897/brics-econ.3.e97857

Authors: Ekaterina Buzulukova, Alina Kobets

Abstract: The mobile games industry has become one of the most popular areas of mobile application development over the past five years. In-app purchases (IAP) are extremely valuable for developers/publishers, and they are interested in promoting them to users. However, previous research revealed differences between drivers of IAP for users from various countries. Authors compare drivers of Russian players and other emerging countries users. The design of the study consists of in-depth interviews with Russian users, followed by a quantitative survey that helps to identify the main drivers of in-app purchases. We found differences in the significance and the list of the drivers for Russian players. Cluster analysis allowed us to identify diverse segments with different priorities, so to be successful, game developers should dive into the peculiarities of the behavior of players in a particular country.

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Research Article Fri, 9 Dec 2022 17:30:00 +0200
Does Okun’s Law Hold for China? Some Empirical Evidence https://brics-econ.arphahub.com/article/95672/ BRICS Journal of Economics 3(3): 173-182

DOI: 10.3897/brics-econ.3.e95672

Authors: Manhar Singh, Ibrahim Nurudeen

Abstract: This paper seeks to estimate the applicability of Okun’s law to the situation in China between 1991 and 2020. A defining and most significant feature of this paper is that China’s unemployment rate has been proxied by youth unemployment and urban unemployment. The stochastic properties test reveals that all the three variables follow I(1) process. The paper uses this knowledge to build data generating process (DGP), which is an outstanding contribution to international research into the steady state growth. Many researchers have pointed out that the poor countries catch up faster and, consequently, their growth rate should have a trend component to it. The applied regression model has proxied the trend when estimating the operation of the Okun’s law. The inclusion of trend, strongly factual, is accounted for and reveals that Okun’s law is valid for China. Apart from the OLS estimator for testing the Okun’s law, the generalized method of moment estimator has also been used as another estimator with the first lag of both unemployment and GDP as instrumental variables. Empirical evidence supports the proposition that Okun’s law is indeed valid in the case of China contrary to the conclusion of some studies.

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Research Article Thu, 8 Dec 2022 10:16:00 +0200
Efficacy of central bank intervention in the foreign exchange market of the BRICS countries https://brics-econ.arphahub.com/article/84676/ BRICS Journal of Economics 3(3): 143-172

DOI: 10.3897/brics-econ.3.e84676

Authors: Dipak Chaudhari, Pushpa Trivedi

Abstract: Central bank intervention plays a major role in managing exchange rate volatility. In comparison to advanced economies, emerging market economies are generally active in the forex market as excessive volatility of the local currency persists. The BRICS countries (Brazil, Russia, India, China and South Africa) are the major emerging economies influencing the international financial system. The paper empirically investigates the efficacy of central bank intervention in the case of the BRICS countries. It has been observed that intervention generally did not impact the exchange rate level; however, it reduced the volatility of the exchange rate. Furthermore, interventions in spot and derivatives markets are equally effective in containing exchange rate volatility, except in South Africa. It has been identified that sovereign yield spread impacts the exchange rate returns in China and South Africa and impacts the volatility in the returns in Brazil and Russia.

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Research Article Fri, 25 Nov 2022 11:05:00 +0200
Foreign direct investments in the BRICS countries and internationalization of Chinese capital https://brics-econ.arphahub.com/article/96300/ BRICS Journal of Economics 3(3): 129-142

DOI: 10.3897/brics-econ.3.e96300

Authors: Bruno De Conti, Antônio Carlos Diegues

Abstract: This article aims to analyze the economic integration of the BRICS countries through foreign direct investments (FDI) since the first summit of the group in 2009. The investigation shows that this integration is very asymmetric due to the preponderance of Chinese investments in other BRICS countries. Hence, the paper sets an associated objective, focusing on the evaluation of diverse patterns of internationalization of Chinese capital and its impact on the investments within the bloc. In line with these goals, the paper’s methodology involves several progressive steps. First of all, we are developing a data analysis of FDI in BRICS. Given the absolute dominance of China’s investments within the bloc, we are shifting the focus to these Chinese outward foreign direct investments (OFDI). In order to cope with this requirement, we are promoting qualitative and quantitative analysis. The qualitative analysis consists in the perception of heterogenous motivations that induce the internationalization of Chinese capital through examining the strategies of three groups of economic agents in China: (1) state-owned enterprises (SOE) operating in traditional sectors, (2) big companies preponderantly oriented on the domestic market, and (3) technology-based companies. The quantitative analysis lies in the scrutiny of the available data on Chinese investments in other BRICS countries. As a result, the main contribution of this article lies in the characterization of heterogeneous strategies of the internationalization of Chinese capital and their analysis within the framework of the asymmetric productive integration within BRICS.

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Research Article Tue, 8 Nov 2022 13:46:00 +0200
Determinants of regional fertility in China during the first years of reaching below-replacement fertility https://brics-econ.arphahub.com/article/83259/ BRICS Journal of Economics 3(3): 101-127

DOI: 10.3897/brics-econ.3.e83259

Authors: Fang Lieming, Ekaterina Shatalova, Irina E. Kalabikhina

Abstract: China reached a stable below-replacement fertility in the middle of 1990s. The turn of this century saw the population development gap in various regions across China expanding, the total fertility rate (TFR) shrinking and remaining at a relatively lower level with the passage of time. Based on China’s official statistics, the authors analyzed the characteristics of the total fertility rate at each stage of the population policy adjustment (1970s, 1982-2013, after 2013), in particular, in the regional aspect. The sub-stage of 1995-2010 – the first years of below-replacement fertility – were considered closely in sense of determinants of regional gaps in fertility. With the help of quantitative analysis, it can be proved that regional per capita GDP (wealth level) has significant links with fertility rate. The higher the per capita GDP, the lower the fertility rate. The authors concluded that the regional total fertility rates and per capita GDP were inversely related, and per capita GDP was the factor that had the greatest correlation with the regional total fertility rate. To increase the regional fertility rate, it is necessary not only to relax the family planning policy, but also to implement incentive policies related to human fertility and to strengthen social, economic, demographic, and cultural constructions.

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Research Article Wed, 5 Oct 2022 15:16:00 +0300
BRICS labor markets: Competing with the largest economy https://brics-econ.arphahub.com/article/85970/ BRICS Journal of Economics 3(2): 75-96

DOI: 10.3897/brics-econ.3.e85970

Authors: Maria Beletskaya

Abstract: This article presents an overview of the labor market development and employment in the BRICS countries. Being among the largest world economies, the BRICS countries are making serious efforts to ensure the sustainability of their labor markets, increase employment opportunities for the population and promote human-centered and inclusive policies based on a decent work approach. The COVID-19 pandemic has affected the BRICS labor markets and highlighted the need for its formalization to ensure the protection of workers’ rights. The countries’ national circumstances are different and so are the specific priorities of the governments in their labor market policies. BRICS cooperation on labor and employment issues allows to exchange experience, knowledge and best practices in addressing various labor market and employment challenges. Based on the discussions of the labor market situations, the BRICS member countries fine-tune their labor policies and actions. The article concludes that BRICS cooperation on labor and employment issues has become an integral part of the collaboration of the BRICS countries. The cooperation agenda will deepen the understanding of various labor market peculiarities and reinforce the solidarity actions of the BRICS countries in the field of labor and employment in the global arena. A comparison of the emerging BRICS economies with the developed and biggest economy of the world reveals that the BRICS countries have made faster progress in their efforts to restore their labor markets after the COVID-19 outbreak.

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Research Article Thu, 21 Jul 2022 11:28:00 +0300
Transition to formal employment in the BRICS countries: Challenges and perspectives https://brics-econ.arphahub.com/article/85847/ BRICS Journal of Economics 3(2): 51-74

DOI: 10.3897/brics-econ.3.e85847

Authors: Elena Zotova

Abstract: The article presents the results of a desk study of documents adopted by the ministers of labor and employment of the BRICS countries with special focus on formalization of labor markets. Declarations and other documents were analyzed through the prism of compliance with the concept of decent work, human centered development and development of inclusive labor markets. The author concludes that informal employment remains a challenge for the BRICS countries, both for workers and for governments. For informally employed workers, this status is increasing the risks of violation of labor rights, dismissal, exposure to unsafe or hazardous working conditions, limitation of accessibility of training and re-training needed to update their skills and competences, the risk of not accumulating sufficient pension rights by the time of retirement, etc. For governments, the phenomenon of informality limits their fiscal space and capacity to develop and implement employment and social protection programs and strategies aimed at formalizing labor markets, increasing the well-being of the population and developing human capital. The multilateral co-creation of the BRICS countries in addressing labor and employment issues demonstrates their strong commitment to ensuring full implementation of the decent work concept within their human centered and inclusive development strategy. The constant exchange of information and experience contributes to the fine-tuning of national employment policies to respond to the emerging challenges and opportunities. Strengthening of cooperation among the BRICS countries increases the perspectives of progress in formalizing their labor markets.

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Research Article Thu, 14 Jul 2022 12:30:00 +0300
BRICS: The 2008 financial crisis and economic performance https://brics-econ.arphahub.com/article/86488/ BRICS Journal of Economics 3(2): 21-49

DOI: 10.3897/brics-econ.3.e86488

Authors: Manmohan Agarwal, Rumi Azim, Sushil Kumar

Abstract: The 2008 global financial crisis (GFC) resulted in a deterioration of the economic condition in developing countries with lower growth of per capita GDP, a decline in the share of exports of goods and services in GDP, and a worsening of the external balance. After a limited initial impact, growth rates declined in all the economies and were substantially lower in all the BRICS countries in the period 2015–2019 than before the crisis. Two of them, Brazil and South Africa, experienced a drop in per capita GDP during 2015–1019. Export performance suffered and the external balance worsened for all BRICS countries. The BRICS share of world GDP increased mainly because of the rapid growth in China and to a lesser extent in India. The relative size of per capita GDP in Brazil, Russia and South Africa decreased between 2001–2007 and 2015–2019. Furthermore, the average per capita GDP in Brazil and South Africa decreased compared to that of the world. BRICS, however, fared better in trade. Both their share of world trade and the share of trade in their GDP increased. The BRICS countries have strong trade links with other developing countries and have become more stable after the GFC, thereby contributing to the performance of the global economy. There are strong growth linkages among the member countries. Trade relations are dominated by China. BRICS, however, failed to comply with G20 commitment made at the 2014 Brisbane summit to raise the rate of growth by 2% by 2018. The authors undertook a time series analysis to investigate the relationship between growth of per capita income, the share of gross fixed investment in GDP, the share of exports of goods and services in GDP, and the share of external balance in GDP. We found out that usually, but not for all BRICS countries, capital formation had a positive effect on growth, while the external deficit had a negative effect.

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Research Article Mon, 11 Jul 2022 15:02:00 +0300
Why legal standards in antitrust enforcement in developing jurisdictions should differ from those in mature jurisdictions: A decision-theoretic approach https://brics-econ.arphahub.com/article/81036/ BRICS Journal of Economics 3(2): 63-76

DOI: 10.3897/brics-econ.3.e81036

Authors: Yannis Katsoulacos

Abstract: The appropriate choice of legal standards (LSs) in antitrust enforcement, that is, decision procedures or decision rules that provide the basis for how potentially anticompetitive conduct must be assessed in order to decide whether there is liability or not, has been hotly debated for many years. The debate has gained in intensity in recent years as a result of the concerns expressed by a significant number of academics and policy makers in many countries about the antitrust treatment of major platforms. Relying on recent developments in the literature on the choice of LSs, this article shows that the adoption of presumption-based LSs, that is, LSs that are closer to Per Se than to Effects-Based in developing jurisdictions, and the standards that would be optimal in developed jurisdictions, is consistent with the principles of minimising the costs of decision errors, and also leads to lower enforcement costs. The standards that would be optimal in developed jurisdictions, is consistent with the principles of minimising the costs of decision errors, and also leads to lower enforcement costs.

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Research Article Wed, 6 Jul 2022 17:30:00 +0300
Brazil’s viewpoints on international organizations: Political aspects https://brics-econ.arphahub.com/article/81072/ BRICS Journal of Economics 3(1): 73-91

DOI: 10.3897/brics-econ.3.e81072

Authors: Valdir da Silva Bezerra

Abstract: Recent (geo)political tensions, the impact of the Covid-19 pandemic and the rise of nationalism worldwide have brought to the forefront processes of (de)globalization both in social, political, and economic terms. In this context, we place questions: How have Brazil’s views on international organizations changed over the years and why does it matter when it comes to understanding the country’s recent contribution to the processes of (de)globalization? To answer the aforementioned questions, this article discusses some of Brazil’s main points of view on international organizations (IOs) from a historical perspective. Therefore, we aim to analyze the criticism and political positions of Brazil regarding the most relevant IOs over time, from the League of Nations to the United Nations and the Bretton Woods institutions. Additionally, this paper addresses Jair Bolsonaro’s (de)globalization positions, especially in view of his peculiar foreign policy oriented towards the contestation of the system. As a concluding point, we provide sufficient evidence on Bolsonaro’s political inclination towards processes of (de)globalization based on his contempt for the so-called ‘globalism’, as well as his nationalistic rhetoric.

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Research Article Mon, 16 May 2022 17:36:00 +0300
Impact of the EU carbon policy on the globalization and ESG agenda https://brics-econ.arphahub.com/article/86001/ BRICS Journal of Economics 3(1): 53-71

DOI: 10.3897/brics-econ.3.e86001

Authors: Andrei Panibratov, Julia Fedoritenko, Darya Dubova, Dmitriy Seleznev

Abstract: The article sheds light on the national climate policies under the influence of the EU “green” agenda towards a new wave of deglobalization. We address issues related to the main provisions of the carbon dioxide (СО2) emission trading system implemented by the EU and posit that European climate policy can enhance the process of reducing interdependence and integration between EU member states and non-EU countries. We suggest that the EU’s global climate leadership, increased use of environmental taxes and stimulation of economic growth based on low-carbon technologies such as hydrogen, energy storage and carbon capture, utilization, and storage (CCUS) can lead to deglobalization. Based on a case study of Finland as an EU member and China as a BRICS representative, we observe the effect of the applied carbon tax on the development of national economies and propose that similar policies across the EU and around the world minimize the risks of deglobalization.

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Research Article Mon, 16 May 2022 17:36:00 +0300
Determinants of FDI inflows to West Africa: Prospects for regional development and globalization https://brics-econ.arphahub.com/article/83129/ BRICS Journal of Economics 3(1): 27-51

DOI: 10.3897/brics-econ.3.e83129

Authors: Ololade Mistura Aromasodun

Abstract: Abstract This paper examines the determinants of foreign direct investment (FDI) inflow into West Africa. FDI is regarded as the central engine for growth. Such inflows are not often satisfactory, both in terms of their volume and in terms of their sectoral distribution, particularly in developing countries. The study carried out a unit root test using the Im-Pesaran-shin (IPS) method, which revealed that four out of many variables were stationary at first difference, while other variables were stationary at level. Consequently, the Kao co-integration test methodology was used to analyze the long-run relationship. Thus, the regression analysis was carried out using the Panel ARDL method in an equation with a 50-year observation period. Concerning the remaining seven equations with shorter time series observations, the Pooled OLS estimation method was used to analyze the factors determining the inflow of FDI. The results indicate that financial development has a negative effect on FDI flows (and hence on globalization processes) in West Africa, while trade openness, institutional composite index and control of corruption have positive effects on FDI and hence increase globalization tendency. Based on these findings, the study recommends, among other things, that the authorities in West African countries vigorously pursue trade liberalization policy as an effort to globalize the region through FDI inflows. The study examined the macroeconomic determinants on FDI alongside institutional and socio-political determinants that are difficult to study in the case of West Africa as a region. The use of a composite institutional quality index, which combines multiple indicators of institutional quality, is another novelty of this research. Another unique contribution of the study is the use of the Africa Infrastructure Development Index (AIDI), which serves as a composite infrastructure index, as an explanatory variable.

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Research Article Mon, 16 May 2022 17:36:00 +0300
Political drivers of international divestments of Russian MNEs https://brics-econ.arphahub.com/article/84707/ BRICS Journal of Economics 3(1): 5-25

DOI: 10.3897/brics-econ.3.e84707

Authors: Andrey Panibratov, Ajai S. Gaur

Abstract: This paper discusses the impact of political factors on MNEs’ strategic choices to divest their foreign operations with a focus on Russian MNEs. The rising anti-globalization sentiments forced many firms to rethink their global strategy. We argue that Russian MNEs operating in countries that did not join the economic sanctions against Russia may be less inclined to divest their subsidiaries than those in countries that supported sanctions. We also suggest that Russian MNEs, located in a host country with similar institutions and political stability as Russia would be less likely to divest. We contribute to the divestment literature by emphasizing the political dimension of the foreign market exit.

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Research Article Mon, 16 May 2022 17:36:00 +0300
MNCs and (de)globalization: New paradigm for emerging markets https://brics-econ.arphahub.com/article/86003/ BRICS Journal of Economics 3(1): 1-3

DOI: 10.3897/brics-econ.3.e86003

Authors: Andrei Panibratov

Abstract: Over the past decade, globalization has faced the number of unprecedented challenges triggered by a series of significant adverse events. With the continuous intensification of protectionism, nationalism, and de-globalization, the global economy has been withdrawing from a high-level of openness and interdependency. Trade disputes and political tensions between countries evoked further concerns of scholars about ongoing de-globalization that has been actively problematized since the end of 2010s. While many scholars expect greater risk aversion, protectionism and nationalism to be the paradigm for national economies and for multinational companies (MNCs), others oppose suggesting that the foundations of globalization have not eroded, and post-pandemic world will need even more globalization. This point grounds on the idea that the world is now and will long be fragmented and unequal, and international firms will persist as bridges that connect the fragmented reality.

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Editorial Mon, 16 May 2022 17:36:00 +0300
Effectiveness of forbearance measures for Russian commercial banks in the current crisis https://brics-econ.arphahub.com/article/24233/ BRICS Journal of Economics 2(4): 103-115

DOI: 10.38050/2712-7508-2021-4-5

Authors: Olga Vinogradova

Abstract: Due to the COVID-19 pandemic, real GDP of Russia is expected to fall by 4-6%. The banking industry provides liquidity to Russian business in times of hardship. On the one hand, the Bank of Russia facilitates lending opportunities for the business and subsidizes the mortgage interest rate for banks and the public in order to prevent business bankruptcies. And on the other hand, it provides liquidity to banks via REPO (repurchase agreement) auctions. Currently, there is not enough demand for REPO transactions from banks, but it might increase after other measures of support begin to be canceled. The article studies the effectiveness of current forbearance measures for Russian banks and provides an insight into the future development of the banking industry after the COVID-19 pandemic.

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Research Article Mon, 27 Dec 2021 00:00:00 +0200
Analysis of the BRICS countries’ pathways towards a low-carbon environment https://brics-econ.arphahub.com/article/24232/ BRICS Journal of Economics 2(4): 77-102

DOI: 10.38050/2712-7508-2021-4-4

Authors: Agyemang Sampene, Cai Li, Fredrick Agyeman, Robert Brenya

Abstract: Global climate change has emerged as humanity’s greatest challenge, affecting both the natural security of the earth and the long-term growth of human society. Protecting the environment and fostering long-term growth while reducing carbon emissions has become a global concern. The BRICS countries (Brazil, Russia, India, China, and South Africa) are participating in the fight against climate change through the promotion of low-carbon environment (LCE). In this study, we use content analysis to discuss some of the policies, plans, and programs outlined by the various governments in the BRICS that can help them implement an LCE. The study indicates that currently Brazil, Russia, India, China, and South Africa are rated as “insufficient,” “critically insufficient,” “compatible,” “incompatible,” and “highly insufficient” respectively in their commitment to nationally determined contributions (NDC) to the Paris Agreement. The paper recommends that the BRICS countries achieve an LCE through expanding low-carbon investments and financing, focusing on taxation that goes beyond energy, investing in low-carbon cities, adapting to a circular economy and low-carbon technologies, expanding electricity markets, and promoting climate-friendly international trade among the BRICS countries.

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Research Article Mon, 27 Dec 2021 00:00:00 +0200
The impact of world oil and food price shocks on the interdependence of Brazil and Russia:SVAR-DCC-GARCH model https://brics-econ.arphahub.com/article/24229/ BRICS Journal of Economics 2(4): 47-76

DOI: 10.38050/2712-7508-2021-4-3

Authors: Samkelisiwe Bhebhe, Ian Ndlovu

Abstract: This study seeks to identify the extent to which global oil and food price volatilities affected the interdependence of the Brazilian and Russian economies in the period from 1996 to 2021. The ARCH/GARCH framework was used to model the volatility of oil and food prices. The Structural Vector Autoregressive (SVAR) approach was used to ascertain the sensitivity of key economic indicators to oil and food shocks. The Impulse Response Function (IRF) was usedto trace short-term effects over a period of 12 months. Subsequently, the multivariate dynamic conditional correlation DCC-GARCH model, created by Engle & Sheppard (2001), was used to model time-varying correlations of paired macroeconomic variables. This study contributes to the empirical literature in two fundamental ways. Firstly, it pairs the two largest oil and food producers in the BRICS bloc. Secondly, unlike some earlier studies, the applied methodology ensures the effectiveness of the results by using stationary time series data. The results show that Brazil and Russia have long-run spillover effects for all macroeconomic variables in response to both oil and food price shocks. Furthermore, money supply and exchange rate variables exhibited declining positive correlation coefficients during the global financial crisis of 2008–2009, but peaked in early 2020 due to the Covid-19 pandemic. As a corollary of the main findings, the researchers recommend that investors should diversify their portfolios beyond these two economies in order to minimize the risk of contagion during severe global crises.

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Research Article Mon, 27 Dec 2021 00:00:00 +0200
Assessing the impact of institutions on economic growth in the BRICS countries https://brics-econ.arphahub.com/article/24227/ BRICS Journal of Economics 2(4): 30-46

DOI: 10.38050/2712-7508-2021-4-2

Authors: Ayushi Tiwari, Tridisha Bharadwaj

Abstract: This study examines the impact of institutional quality on economic performance in the BRICS countries for the period from 2002 to 2019. The panel data study was estimated using pooled OLS and a fixed effect model. The study employed six institutional quality indicators (Worldwide Governance Indicators) which included voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption. The study also controlled for conventional sources of growth, i.e. human capital, physical capital, government expenditure, and inflation. All of these factors were positive and significant in our study. The findings also reveal that government effectiveness, regulatory quality and control of corruption had a positive and significant impact on economic growth in the BRICS countries, whereas other institutional variables turned out to be insignificant.

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Research Article Mon, 27 Dec 2021 00:00:00 +0200
Determinants of underpricing initial public offerings (IPOs) of BRICS companies https://brics-econ.arphahub.com/article/24207/ BRICS Journal of Economics 2(3): 83-106

DOI: 10.38050/2712-7508-2021-3-5

Authors: Gasymov Afik, Svetlana Makarova

Abstract: The purpose of this article is to identify the nature of the influence of crucial factors on the short-term underpricing of initial public offerings of common stocks of companies in the BRICS countries. Based on a sample of 1,141 companies from the BRICS countries that conducted IPOs (using Bloomberg and World Bank databases), we tested the influence of decisive factors on the underpricing of the shares of these companies. The empirical study is based on testing OLS models for different periods: for the period 2001–2018 and separately for the periods 2001–2008 and 2010–2018. The study shows that, firstly, with an increase in the volume of the placement of shares, their underestimation in an IPO decreases. In addition, having an auditor from the Big Four also reduces the underestimation of shares. Secondly, we revealed that the underpricing of shares in the course of the IPO increased with GDP growth. Besides, if companies place their shares on a foreign exchange, the underestimation of their shares increases. At the same time, such IPO parameters as the number of underwriters, the reputation of underwriters, and the deviation of the offer price from the middle of the price range during the placement period do not affect the underestimation of shares for companies from the BRICS countries. Taking into account the results of an empirical study, the article formulates recommendations for improving the efficiency of initial public offerings for companies from the BRICS countries.

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Research Article Thu, 30 Sep 2021 00:00:00 +0300
Digital shifts in human resource management in the global economy https://brics-econ.arphahub.com/article/24206/ BRICS Journal of Economics 2(3): 70-82

DOI: 10.38050/2712-7508-2021-3-4

Authors: Amirreza Nikpour, Svetlana Semushkina

Abstract: This article examines the key issues related to digital shifts in human resource management in the global economy. The purpose of the article is to identify the features and key trends in the introduction of digital technologies on the example of the BRICS countries. The study yielded a number of results. In the course of the research, the theoretical foundations of the digitalization of HR management are analyzed. The current situation and the contemporary level of human development in the BRICS countries is also noted. The features and problematic aspects of digital transformations in the human resource management system are outlined on the example of Russia, China and Brazil. In addition, the main digital technologies that are widely used in the countries under consideration are described.

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Research Article Thu, 30 Sep 2021 00:00:00 +0300
The development of e-commerce in China during the COVID-19 pandemic on the example of the textile industry https://brics-econ.arphahub.com/article/24205/ BRICS Journal of Economics 2(3): 54-69

DOI: 10.38050/2712-7508-2021-3-3

Authors: Deng Junzhi

Abstract: The purpose of this paper is to analyze the current situation with e-commerce in China’s textile industry and new business models during the COVID-19 epidemic. The author studied the vital problems of the Chinese textile industry from the point of view of electronic commerce. In order to solve research problems, the method of qualitative content analysis was used to classify and summarize the research situation. Data sources include the latest academic papers, industry analytical reports of securities research institutions, reports of consulting companies (Boston Consulting Group, McKinsey & Company, etc.), as well as government and organization documents (ITMF, United Nations, etc.). Based on the research process, it can be concluded that during the COVID-19 period up to the middle of 2021, China’s textile industry experienced four stages, having switched from traditional e-commerce to interested e-commerce. Innovation and digital transformation seem to be necessary conditions for China’s textile industry to overcome the negative impact of the COVID-19 pandemic. Finally, the author puts forward a long-term development trends of the textile industry after the COVID-19 epidemic.

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Research Article Thu, 30 Sep 2021 00:00:00 +0300
Promotion of a healthy lifestyle in Russia and China. The first results of COVID-19 and trends in the post-COVID economy https://brics-econ.arphahub.com/article/24202/ BRICS Journal of Economics 2(3): 27-53

DOI: 10.38050/2712-7508-2021-3-2

Authors: Elena Sharko

Abstract: The COVID-19 pandemic has not only become a test for all mankind, but also gave reason to rethink the attitude to their health not only for people from the high-risk category, but also for everyone. Before the pandemic, the concept of a healthy lifestyle was gaining a powerful economic momentum (popularization of communities associated with fitness products, advertising, healthy products, etc.). But has the trend changed after the restrictions were eased? The purpose of this paper is to find out whether the healthy lifestyle concept affected the preservation of the health of the nation during the pandemic (is there a link between the level of national health and the degree of resistance to pandemics?). The study focuses on two countries — Russia and China. The difference in the population’s perception of the healthy lifestyle concept, promotion of a healthy lifestyle at the governmental level, and the assessment of its effectiveness are determined based on the analysis of secondary statistical data, a survey of 1,230 respondents from Russia and China in late 2020 — early 2021, as well as using econometric factor analysis. The results obtained can be scaled to the rest of the BRICS countries in order to adapt existing state programs to preserving the health of nations in the future.

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Research Article Thu, 30 Sep 2021 00:00:00 +0300
Sanctions, cooperation, and innovation: Insights into Russian economy and implications for Russian firms https://brics-econ.arphahub.com/article/24200/ BRICS Journal of Economics 2(3): 4-26

DOI: 10.38050/2712-7508-2021-3-1

Authors: Andrey Panibratov

Abstract: The aim of this paper is to reveal the effects of sanctions at the firm level, with the special attention to cooperation and innovation activity of sanctioned firms. Specifically, the differences between domestic and international companies in their ability to adapt to the sanctions in terms of their cooperation with partners and capability to innovate are discussed. The study argues that firms operating in international markets tend to prioritize product innovation and entering new markets to overcome negative consequences of sanctions. In addition, they are more likely to improve their products and to find new markets to compensate for losses and fill their unused capacities. An important finding having both managerial and political value is that operating in the international market may not necessarily provide an advantage in terms of new partners in the local market but rather facilitate the search for new foreign markets. Inviting the government to provide assistance for Russian domestic and international firms on an equal basis, we admit that with varying degrees of control and interest in national firms, the Russian government can help sanctioned companies in different ways, regardless the scale of their internationalization. The study contributes to the literature on the impact of economic sanctions at the firm-level and in the context of the domestic market of the sanctioned country.

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Research Article Thu, 30 Sep 2021 00:00:00 +0300
Urban development and interethnic intolerance: Evidence from Russia https://brics-econ.arphahub.com/article/24225/ BRICS Journal of Economics 2(4): 4-29

DOI: 10.38050/2712-7508-2021-4-1

Authors: Daniil Sitkevich, Agniya Konstantinova

Abstract: This work is devoted to the study of the impact of urban development on interethnic intolerance. Although studies on the impact of urbanization and the economic well-being of cities on interethnic intolerance have been conducted in other countries, no similar scientific work has been conducted in Russia. The purpose of this paper is to determine factors related to urban development that influence the level of interethnic intolerance in a Russian city and to clarify the nature of this influence. The assumption of the presence of such an influence is based on the fact that the comfort of the urban environment can play the role of an indicator of economic well-being, while the exacerbation of social conflicts during periods of economic instability is scientifically substantiated. This influence is studied using an econometric study on a sample of 66 Russian cities with a population of over 100 thousand people, where 2 or more crimes motivated by interethnic intolerance were committed during the period 2007–2019. The information base for the studywas obtained from the website of the SOVA Center for Information and Analysis, the statistical databases of Rosstat and EMISS, and the official website of the urban environment quality index. Based on the results obtained, it is concluded that interethnic intolerance is reduced due to a comfortable urban environment. Also, according to the study, in more populated Russian cities the level of interethnic intolerance is higher, whereas the incomes of city residents reduce it.

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Research Article Thu, 30 Sep 2021 00:00:00 +0300
The effect of the quality of corporate governance on the dividend policy of companies in the BRICS countries https://brics-econ.arphahub.com/article/24187/ BRICS Journal of Economics 2(2): 84-106

DOI: 10.38050/2712-7508-2021-2-5

Authors: Maria Khamidullina, Svetlana Makarova

Abstract: The article presents the results of a study aimed at determining the nature of the influence of the quality of corporate governance on the dividend policy pursued by companies in the BRICS countries. This relationship is determined based on empirical research on a sample of 122 large public corporations of the BRICS countries (based on 610 observations) for the period from 2015 to 2019. The study uses Tobit, random effects, fixed effects, and OLS. The results of this study show that the quality of corporate governance significantly negatively correlates with dividend payments of companies. This means that companies in the BRICS countries adhere to the dividend substitution model (proposed by La Porta), or, in other words, compensate for the poor quality of corporate governance with high dividend payments. Taking into account the results of the study, in the final part of the article, the main methods of improving the quality of corporate governance are proposed, which can contribute to increasing the value of companies in the BRICS countries.

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Research Article Fri, 30 Jul 2021 00:00:00 +0300
Impact of a sports mega-event on the perception of the image of a tourist destination: The case of the 2018 FIFA World Cup https://brics-econ.arphahub.com/article/24185/ BRICS Journal of Economics 2(2): 53-83

DOI: 10.38050/2712-7508-2021-2-4

Authors: Yana Rozhda, Marina Sheresheva

Abstract: Given a changing global context, there is a need to understand if sports mega-events that are now often hosted by the BRICS countries can serve as a tool to improve their international perception as attractive tourist destinations. The study presented in the paper analyzes the perception of Russia and host cities of the 2018 FIFA World Cup by visiting fans. The problem was examined using the available secondary data, as well as empirical data obtained in the spring of 2021 by means of semi-structured interviews and survey methods. The study confirms that hosting of a sports mega-event affects the perception of the destination by its visitors. Organizing such an event encourages people to choose a location that has not been considered before and helps to dispel negative myths and stereotypes imposed by the media. The results also confirm that attending a sports mega-event may lead to an intention to revisit its venue. The results of the study are useful to an international audience, both academics and practitioners, including policy makers.

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Research Article Fri, 30 Jul 2021 00:00:00 +0300
The concept of global public goods in contemporary international relations between Russia and China https://brics-econ.arphahub.com/article/24184/ BRICS Journal of Economics 2(2): 33-52

DOI: 10.38050/2712-7508-2021-2-3

Authors: Natalia Kononkova, Yulia Bulgakova, Natalia Kuznetsova, Yulia Prokhodtseva, Maria Ustiuzhanina

Abstract: The research concentrates on the development of the concept of global public goods in Russia and China, while new economic grounds are emerging, including a shift to digital economy and the COVID-19 pandemic. This concept is analyzed with a special emphasis on joint Russian-Chinese projects. The analysis is supplemented by a classification based on the financing of global public goods. The findings of our research show that the vast majority of global public goods are financed by governments, even though such global threats as pandemics require donations, as well as further actions by all possible investors. According to the results, with the rapid development of digitalization, most initiatives are aimed at encouraging the spread of digital technologies. The findings of the research suggest implications for figuring out who may have a special interest in the financial aspect of the concept of global public goods.

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Research Article Fri, 30 Jul 2021 00:00:00 +0300
A comparative time series analysis of crude mortality rate in the BRICS countries https://brics-econ.arphahub.com/article/24183/ BRICS Journal of Economics 2(2): 17-32

DOI: 10.38050/2712-7508-2021-2-2

Authors: Olushina Awe, Olumide Ayeni, Gbenga Sanusi, Lukmon Oderinde

Abstract: Proper research and analysis of mortality dynamics is essential to provide reliable economic information about any country. This paper deals with the historical comparative time series analysis of the mortality rate dynamics in the BRICS countries to determine their economic performances over the years. This article presents stochastic models based on autoregressive integrated moving average (ARIMA (p, d, q)) models of various orders with a view to identifying the optimal and comparative model for the crude death rate (CDR) in the BRICS countries. The ARIMA (p, d, q) models were formulated for the crude death rates in the BRICS countries and the overall annual crude death rate for the period 1960–2018. The optimal choice of ARIMA models of order p and q was selected for each of the series. The results indicate that the ARIMA (2, 2, 0) model was the optimal model for predicting mortality dynamics in the overall BRICS data. In addition, there was a significant decrease in trends (p-value < 2.22e-16) during the study period from 1960 to 2018. In addition, the crude death rate’s data for the BRICS countries proved to be mostly non-linear, non-seasonal and without structural breaks. Finally, the findings of this study were discussed and recognized as having relevant policy implications for forecasting, insurance planning, as well as for disaster or risk reduction in the context of unprecedented global happenings in the post-pandemic era.

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Research Article Fri, 30 Jul 2021 00:00:00 +0300
Linear and nonlinear linkage of conditional stochastic volatility of interbank interest rates: Empirical evidence of the BRICS countries https://brics-econ.arphahub.com/article/24182/ BRICS Journal of Economics 2(2): 4-16

DOI: 10.38050/2712-7508-2021-2-1

Authors: Zouhaier Dhifaoui, Faicel Gasmi

Abstract: The purpose of this article is to detect a possible linear and nonlinear causal relationship between the conditional stochastic volatility of log return of interbank interest rates for the BRICS countries in the period from January 2015 to October 2018. To extract the volatility of the analyzed time series, we use a stochastic volatility model with moving average innovations. To test a causal relationship between the estimated stochastic volatilities, two steps are applied. First, we used the Granger causality test and a vector autoregressive model (VAR). Secondly, we applied the nonlinear Granger causality test to the raw data to explore a new nonlinear causal relationship between stochastic volatility time series, and also applied it to the residual of the VAR model to confirm the causality detected in the first step. This study demonstrates the existence of some unidirectional/bidirectional linear/nonlinear causal relationships between the studied stochastic volatility time series.

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Research Article Fri, 30 Jul 2021 00:00:00 +0300
Consumer behavior in China and Russia: Comparative analysis https://brics-econ.arphahub.com/article/24174/ BRICS Journal of Economics 2(1): 74-90

DOI: 10.38050/2712-7508-2021-30

Authors: Tiantian Li, Ximeng Ye, Anastasiya Ryzhikh

Abstract: This article is a study of consumer behavior in China and Russia. The research studies scientific publications and consumer preferences in both countries. Comparative analysis shows that Russia and China, which are rapidly entering a new era of consumption, differ in the level of development of consumer behavior that is directly related to the level of development of digital technologies. Therefore, the impact of COVID-19, the development of digitalization, and the spread of Internet technologies have led to an improvement in diversified consumer preferences that contributed to a change in consumer behavior in China. Currently, there is an insufficient level of digitalization of society in Russia, which does not allow to fully interact with consumers and influence their preferences. The authors also identify contemporary trends in consumer behavior worldwide. In addition, some factors that determine the choice of a certain type of consumer behavior are also identified: external factors, motivational factors, and functional factors. Based on the results of the study, a universal model of the influence of various factors on the behavior of Russian and Chinese consumers is formed and some recommendations are given to sellers during the COVID-19 period.

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Research Article Wed, 31 Mar 2021 00:00:00 +0300
Changes in consumer behavior in the BRICS countries during the COVID-19 pandemic: The role of trust and anxiety https://brics-econ.arphahub.com/article/24167/ BRICS Journal of Economics 2(1): 53-73

DOI: 10.38050/2712-7508-2021-29

Authors: Svetlana Berezka, Vera Rebiazina, Snezhana Muravskaia

Abstract: In the spring of 2020, the COVID-19 pandemic created a new reality. Each country has implemented different measures to contain the pandemic, which has had many consequences for society and businesses. The purpose of this paper is to improve understanding of how the COVID-19 pandemic has changed consumer behavior in the BRICS countries and discuss the role of consumer trust and anxiety. A systematic literature review with a bibliometric analysis was carried out to identify research directions and reveal the role of trust and anxiety in consumer behavior. Differences in consumer responses to the COVID-19 pandemic challenges in Brazil, Russia, India, and South Africa were identified based on an analysis of an international database of online surveys. An empirical study of Russian consumers was conducted in the spring of 2020. Cluster and factor analyses were applied to reveal different consumer strategies of coping with the crisis. The study revealed differences in consumer trust and the level of anxiety in the BRICS countries. In the empirical study of Russian consumers, anxiety was identified as one of the factors in changing consumer behavior in response to the COVID-19 pandemic.

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Research Article Wed, 31 Mar 2021 00:00:00 +0300
A measurement instrument of cognitive economics in the BRICS countries https://brics-econ.arphahub.com/article/24164/ BRICS Journal of Economics 2(1): 40-52

DOI: 10.38050/2712-7508-2021-28

Authors: Evgeniya Gorlacheva, Tatiana Tikhomirova

Abstract: The paper envisages the key features of the cognitive economics in the BRICS countries. Due to their substantial impact on the development of the world economics, it is necessary to investigate the cognitive processes in these countries. The distinctive feature of the current world economy is the quality transformation of its technological basis that forms global challenges for the future world economic development. The essence of this transformation is to strengthen cognitive processes: emergence of robots, commercial spread of artificial intelligence technologies, changes in labor skills, etc. These quality changes lead to the formation of a new stage of economics — cognitive economics. As a sphere of scientific research, cognitive economics includes three main domains: intellectual systems, knowledge management, and cognitive technologies. Despite the fact that all these phenomena are present in the economy of each country there is no suitable instrument that can measure cognitive processes at the country level. The purpose of this paper is to elaborate a measurement tool for evaluating the level of cognitivization in the BRICS countries. Taking into account this goal, the authors developed an aggregated index based on a generalized principal component analysis. As a result, the main parameters that make the greatest contribution to the cognitive index were identified. Comparison at the country level shows that the first sub-index has more weight connected with the human capital of the countries. As for R&D and ICT infrastructure — the second and third sub-indices — the situation in the BRICS countries is almost the same. The obvious conclusions of the monitoring are that cognitive economics in the BRICS countries has a chance to intensify their economic development and slash the backlog with the developed countries.

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Research Article Wed, 31 Mar 2021 00:00:00 +0300
Dynamic linkage between trade openness and sustainable development: Evidence from the BRICS countries https://brics-econ.arphahub.com/article/24163/ BRICS Journal of Economics 2(1): 23-39

DOI: 10.38050/2712-7508-2021-27

Authors: Mehraj Sheikh, Mushtaq Malik, Rana Masood

Abstract: The link between trade and sustainable development has been largely analyzed on a piecemeal basis. A comprehensive study simultaneously examining economic, social and environmental aspects of sustainable development is needed to ensure coherence between the competing results of previous studies. This study aims to examine the relevance of trade openness in defining sustainable development, with special focus on five emerging countries known as BRICS, using the dynamic panel autoregressive distributed lag (ARDL) approach. The results indicate that economic growth has a tendency to enhance sustainability in both the long and short run. However, trade openness, energy consumption and foreign direct investment are extremely detrimental for sustainable development.

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Research Article Wed, 31 Mar 2021 00:00:00 +0300
Economics of nature protection and resource conservation from the Russian Empire to the USSR. Achievements, failures, and conflicts https://brics-econ.arphahub.com/article/24162/ BRICS Journal of Economics 2(1): 4-22

DOI: 10.38050/2712-7508-2021-26

Authors: Alina Steblyanskaya, Wang Zhen, Sergey Bobylev, Vladimir Bocharnikov

Abstract: Considering the attention paid to nature protection throughout the history of economics, it would be worthwhile to evaluate the scientific thought in the Russian Empire, the USSR and Russia concerning an environmentally oriented economy. The review presents an analysis of research works on this topic — from Vernadsky’s concept of the biosphere and environmentally oriented management in the USSR to the modern scientists’ ideas. In the USSR, economics of nature conservation studied the strongest interconnections between society and the ecological environment for further depleting and preventing pollution. The study identifies the leading researchers and outlines the main concepts of how the economy can reflect environmental protection and support sustainability.

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Research Article Wed, 31 Mar 2021 00:00:00 +0300
Bibliometric analysis of the most cited articles in BRICS research https://brics-econ.arphahub.com/article/24223/ BRICS Journal of Economics 1(4): 95-106

DOI: 10.38050/2712-7508-2020-1-4-9

Authors: Matheus Rech, Germano Almeida

Abstract: Bibliometric analysis identifies the most impactful and prolific journals, authors, countries, and institutions by assessing the most cited articles in a specific research area. The aim of this study is to analyze and to provide a scope of modern scientific products related to BRICS. The 100 most cited articles related to the BRICS research were retrieved from the study “(BRICS)” in the Scopus database. The variables collected and included in this analysis are: number of citations, article title, first author’s name, year and journal of publication and its impact factor, theme and country mentioned in the database at the time of publication, and category of the paper (original article or review).

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Population trends in BRICS: Developments and projections https://brics-econ.arphahub.com/article/24222/ BRICS Journal of Economics 1(4): 82-94

DOI: 10.38050/2712-7508-2020-1-4-8

Authors: Lucas Gualberto do Nascimento

Abstract: The purpose of the article is to analyze population trends in the BRICS countries in the period from 2000 to 2019 based on local realities and socio-economic indexes, as well as to study projections up to 2050. The article also explores initiatives of the United Nations Population Fund (UNFPA) in the field of demographic research relevant to BRICS, such as fertility, birth, and mortality rates. Thus, it is possible to determine the main characteristics of the population of the BRICS countries, their challenges and objectives, which allow us to predict with an eye to 2050 and the dynamics of the evolution of each member of the international cooperation grouping. Overall, it is argued that urbanization processes were one of the key factors driving population trends in the BRICS countries, especially those related to lower fertility rates. Finally, the current situation of BRICS in the international scenario is evaluated, given the explored attributes, with an emphasis on the importance of public policies favorable for the full development of the potential of the BRICS population. Therefore, member states’ initiatives to promote higher levels of social welfare are investigated, as well as their benefits to local peoples, who together account for more than 40% of the world’s total population.

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Institutionalization of the BRICS discourse: How does the NDB embody the group’s views on global financial governance? https://brics-econ.arphahub.com/article/24219/ BRICS Journal of Economics 1(4): 70-81

DOI: 10.38050/2712-7508-2020-1-4-7

Authors: Valdir da Silva Bezerra

Abstract: The architecture of global financial governance has recently been complemented by emerging economies’ efforts to coordinate policies, as exemplified by new coalitions of states and a new set of non-Western international institutions. BRICS, in its turn, has made a significant contribution in this direction by establishing the New Development Bank — an alternative to traditional mechanisms of financing development projects with an emphasis on sustainability. As a representative of the growing cooperation of the BRICS countries in recent decades, the NDB highlights most of the group’s views on financial governance. This paper applies a qualitative/analytical approach to the BRICS and NDB Communiqués and practices in order to demonstrate how the bank has managed to successfully institutionalize the group’s discourse over time.

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
On de-risking and de-dollarizing intra-BRICS trade via smart contracts https://brics-econ.arphahub.com/article/24218/ BRICS Journal of Economics 1(4): 54-69

DOI: 10.38050/2712-7508-2020-1-4-6

Authors: Parv Aggarwal

Abstract: This study explores the existing systemic barriers to intra-BRICS national currency use (“de-dollarization”) in currency swaps and trade finance. The author examines the current de-dollarization initiatives, as well as the actual levels of de-dollarization in Russia’s intra-BRICS settlements (as a representative sample), to find gaps between de-dollarization goals and current initiatives and offers a near-term phased solution to overcome these gaps and de-risk trade within BRICS. It is found that 1) the New Development Bank’s Contingency Reserve Arrangement has built-in systemic barriers which are preventing direct currency swaps between BRICS member states; 2) the Euro is replacing the Dollar as Russia’s preferred settlement currency within BRICS, indicating a gap between Russian traders’ settlement currency choice and BRICS de-dollarization priorities; and, furthermore, 3) while payment and settlement systems are being integrated and FinTech applications are being explored, efforts to fundamentally address the systemic market factors preventing national settlement use are missing. A phased solution is proposed to address the fundamental market barriers to national currencies by using smart contracts to de-risk intra-BRICS trade. Specific mechanisms are outlined to promote trade contracts in national currency and reduce dependency on both the Dollar/Euro and Western institutions (such as the IMF and Western commodities markets), a high-level architecture is proposed, and implementation considerations are discussed.

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Comparison of approaches to legal regulation of e-commerce in the BRICS countries https://brics-econ.arphahub.com/article/24217/ BRICS Journal of Economics 1(4): 42-53

DOI: 10.38050/2712-7508-2020-1-4-5

Authors: Evgenia Serova

Abstract: The article examines the importance of e-commerce in the modern world, as well as the level of its development and legal regulation in the BRICS countries. The author studied the problems of functioning of international electronic commerce during the 2020 coronavirus pandemic. For the purpose of comparative legal research, the legislation on electronic commerce of the Russian Federation, the People’s Republic of China, Brazil, India, and the Republic of South Africa was considered. In the course of the study, it was concluded that the existence of a single normative act

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Impact of a BRICS integrated payment system on cross-border e-commerce https://brics-econ.arphahub.com/article/24215/ BRICS Journal of Economics 1(4): 33-41

DOI: 10.38050/2712-7508-2020-1-4-4

Authors: Daniel Barbosa

Abstract: This article examines what a BRICS integrated payment system can be and how it may affect the cross-border e-commerce dynamics. First, we show how the current international transaction system works, its geopolitical consequences and what a BRICS independent payment system implies. Second, we examine the current e-commerce scenario in BRICS, its main challenges, and what can be improved in it with the help of the proposed exclusive financial network. In conclusion, we review the current situation and make some necessary comments.

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Investment cooperation in the BRICS countries https://brics-econ.arphahub.com/article/24211/ BRICS Journal of Economics 1(4): 24-32

DOI: 10.38050/2712-7508-2020-1-4-3

Authors: Maria Sholokhova

Abstract: The purpose of the study is to analyze the current stage of investment cooperation between the BRICS countries in terms of current investment projects and legislation regulating investment interaction. The methods of the research are as follows: investigating the issue of investment cooperation between different member states and the legal framework for such cooperation; finding sources such as books, magazines, journals, legal acts, and websites; collecting all the necessary data; critical analysis of the data on the issue of the research; developing an outline. The investment interaction under study is presented at three different levels: outward foreign direct investments from the BRICS countries; foreign direct investments into the BRICS countries; and investment cooperation between the BRICS countries. All levels of investment cooperation are regulated both at the national and international levels.

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Quantitative dynamics of intra-BRICS trade https://brics-econ.arphahub.com/article/24209/ BRICS Journal of Economics 1(4): 6-23

DOI: 10.38050/2712-7508-2020-1-4-2

Authors: Mohd Rahman, Zeenat Fatima, Nida Rahman

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.

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Research Article Mon, 28 Dec 2020 00:00:00 +0200
Foreword https://brics-econ.arphahub.com/article/24208/ BRICS Journal of Economics 1(4): 4-5

DOI: 10.38050/2712-7508-2020-1-4-1

Authors: Viktoriya Panova

Abstract:

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Editorial Mon, 28 Dec 2020 00:00:00 +0200
Harmonization of tax and financial systems within BRICS https://brics-econ.arphahub.com/article/24197/ BRICS Journal of Economics 1(3): 69-70

DOI: 10.38050/2712-7508-2020-16

Authors: Michail Kosov

Abstract: The modern world economy is characterized by such factors as capital mobility, intensification of production processes and cash flows. In such circumstances, it is particularly important for economic entities to understand all possible legal consequences of their operations. Financial policy should be formed by public legal entities, taking into account the guarantees of avoiding unjustified financial, economic and other barriers to the development of the world economy and international trade. The BRICS countries, which have a huge potential for building and developing close economic ties, have different and sometimes contradictory law enforcement and legislative approaches. Such contradictions are most acute in the tax sphere, currency, administrative and customs relations. The current international legal framework seeks to bring legal regulation closer to comparable or uniform rules.

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Research Article Fri, 6 Nov 2020 00:00:00 +0200
State regulatory measures of the government of India in the situation of the COVID-19 outbreak https://brics-econ.arphahub.com/article/24196/ BRICS Journal of Economics 1(3): 53-68

DOI: 10.38050/2712-7508-2020-15

Authors: Yogender Chauhan, Zhanna Mingaleva, Irina Mirskikh

Abstract: The aim of the paper is to analyze the measures taken by the government of India to prevent the spread of coronavirus infection among the population, as well as to mitigate the impact of COVID-19 pandemic on the activities of companies and enterprises and to prevent a socio-economic crisis. The main shortcomings and positive results achieved by the government of India, state and city administrations in the fight against COVID-19 are identified using bibliographic and comparative analysis methods and taking into account the historical context. The authors conclude that the existing “Epidemic Diseases Act,” 1897, which is applied as the main normative act regulating the epidemiological situation in the country, does not take into account all the factors and conditions of the spread of infectious diseases in the modern world and does not reflect the reality in terms of effective response to the outbreak of coronavirus disease.

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Research Article Fri, 6 Nov 2020 00:00:00 +0200
Inflation targeting: From “constrained discretion” to singularity https://brics-econ.arphahub.com/article/24193/ BRICS Journal of Economics 1(3): 39-52

DOI: 10.38050/2712-7508-2020-14

Authors: Oleg Buklemishev

Abstract: In recent years, inflation targeting has become a staple of international monetary policy. The paper considers different challenges this monetary policy regime faces with regard to suppressed inflation, attaining the zero lower bound on the policy interest rates, and committing central banks to simultaneously pursue additional objectives such as financial stability. Inflation targeting has proved inefficient in raising inflation to the target zone from below, and unorthodox monetary policy tools have not proved their validity in this regard yet. As a result, monetary authorities are more inclined to discretion allowing them to compromise different aspects of “pure” inflation targeting. The value of this discretion is based on asymmetric information and boosted by additional functions assumed by central banks. However, it might bring about serious problems of dynamic inconsistency, compounded political uncertainty, and bureaucratic misconduct. Since none of the alternatives to inflation targeting currently looks fully satisfactory, it is concluded that the inflation targeting regime should be transformed to take into account the current situation, but a necessary precondition for the effectiveness of the new regime is enhanced accountability of central banks.

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Research Article Fri, 6 Nov 2020 00:00:00 +0200
Law and economics vs. formal legal approach in criminal prosecution of the cartel https://brics-econ.arphahub.com/article/24189/ BRICS Journal of Economics 1(3): 23-38

DOI: 10.38050/2712-7508-2020-13

Authors: Andrey Shastitko, Kirill Dozmarov

Abstract: Criminal prosecution of monopolistic activities in the form of market cartelization is the most sensitive instrument for individuals and can both have a serious deterrent effect and restrict behavior that is beneficial to the public welfare. The paper considers theoretical and economic aspects of choosing an antitrust enforcement regime in view of the projected changes in the discussion and application of the norms of article 178 of the Criminal Code of the Russian Federation, taking into account possible differences between organizing a cartel, entering into a cartel agreement and participating in a cartel. It is obvious that there are various options for correlating the concept of concluding an agreement and participating in it, including anti-competitive. However, it requires realistic assumptions about human behavior. Based on the principle of methodological individualism and the concept of bounded rationality used in economic sciences, the authors demonstrate restrictions on projecting the ratio of agreement conclusion/participation of legal entities (economic entities) on actions of individuals. Practical issues of designing criminal punishment for cartels are considered taking into account various legal concepts, including the form and types of guilt, as well as on the basis of comparison with other articles of the Criminal Code providing punishment for collective unlawful acts. In connection with the reproduction of the tradition of hostility in antitrust legislation, the Russian antimonopoly legislation has identified the risks of objective imputation (risks of type I errors) and insufficient punishment of the cartel organizer (risks of type II errors) in case of underestimation of the weight of economic concepts based on the principle of methodological individualism and the assumption of bounded rationality of individuals.

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Research Article Fri, 6 Nov 2020 00:00:00 +0200
Industrial Revolution 4.0 in the BRICS countries: What are the challenges for industrial policy? https://brics-econ.arphahub.com/article/24188/ BRICS Journal of Economics 1(3): 4-22

DOI: 10.38050/2712-7508-2020-12

Authors: Yurii Simachev, Anna Fedyunina, Mikhail Kuzyk

Abstract: Long-term scenarios predict that the BRICS countries can overtake the G7 countries in their contribution to the world economy, but, as follows from the analysis of multicomponent international indices, the same countries lag significantly behind the G7 countries in terms of preparedness for a technological future. In this regard, the growth prospects of the BRICS economies are largely determined by possible strategies of the countries to disseminate and use the Fourth Industrial Revolution (Industry 4.0) technologies.Analysis of TiVA OECD data revealed that BRICS was not very profitably integrated into global value chains — far from the final consumer abroad and relatively close to suppliers of raw materials and semi-finished products — which in the long term determines the limitations on increasing economic complexity. Analysis of the WITS World Bank data revealed that BRICS was relatively poorly involved in the processes of international exchange of products related to the technologies of Industry 4.0 — industrial robots, additive technologies, computer-aided-design and computer-aided-manufacturing technologies, and biotechnologies — and retained the position of net importers, with China making the greatest contribution to the dynamics of trade.Taking into account the general growth of global competition for technologies associated with Industry 4.0 and the continuing lag of BRICS in creating and using such technologies, the authors highlight the challenges for the industrial policy of the BRICS countries and discuss possible answers within the framework of industrial and trade policies. Challenges for BRICS include continued participation in global networks as countries serving the production and trade of new technologies; lagging behind in the level of development of the institutional environment and infrastructure for development of technologies; formation of limited “hotbeds” intensively using the Industry 4.0 technologies; and, thus, growth of spatial, inter- and intra-sectoral inequality.

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Research Article Fri, 6 Nov 2020 00:00:00 +0200
Migration policy towards skilled labor in the Russian Federation https://brics-econ.arphahub.com/article/24181/ BRICS Journal of Economics 1(2): 80-102

DOI: 10.38050/2712-7508-2020-11

Authors: Olga Chudinovskikh, Oxana Kharaeva

Abstract: The article analyzes the policy of the Russian Federation towards skilled foreign labor in retrospect — from the moment of the collapse of the USSR to the present day. It is shown that throughout the recent history of law-making and in practice, labor migrants have been considered mainly as a temporary phenomenon despite the country’s need for qualified personnel who could become a part of its resident population. The article attempts to systematize existing channels of skilled migration and provides main principles of their operation. It is shown that, with the exception of a program aimed at the so-called highly skilled specialists (HSS), other forms of attracting foreign workers do not offer a package of conditions that can interest potential migrants in moving to Russia. The system of attracting HSS has not yet shown its effectiveness and is mainly used for simplified temporary access to the Russian labor market. The State Program of assistance to the resettlement of compatriots, formally intended for migrants with ethnic and cultural affinity to the population of Russia, actually uses the principles of selection of skilled labor migrants. Only at the end of 2019, steps were taken that made it easier for graduates of Russian universities and technical schools, as well as specialists with professions in demand, to obtain a residence permit. However, these steps look half-hearted. Comparing the Russian experience with the practice of some foreign countries gives grounds for thinking about what tools and approaches can improve the effectiveness of the Russian policy towards qualified migrants and arouse their interest in moving to our country for permanent residence.

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Research Article Fri, 31 Jul 2020 00:00:00 +0300
Chinese experience in implementing renewable energy sources as a possible scenario for the Krasnoyarsk Territory https://brics-econ.arphahub.com/article/24180/ BRICS Journal of Economics 1(2): 59-79

DOI: 10.38050/2712-7508-2020-10

Authors: Sergey Nikonorov, Konstantin Papenov, Denis Sergeyev

Abstract: Renewable energy is a rapidly developing area of the modern economy. As many experts forecast, global electricity consumption will double by 2050, while the share of renewable sources in energy generation will be 50%. For most states, the main incentives for the development of renewable energy are the ability to eliminate the consumption of fossil fuels and reduce the level of emissions of pollutants, while ensuring sustainable development of the country. At the same time, Russia, which has significant reserves of natural resources, is in no hurry to switch to the use of energy from renewable sources since it is believed that the country’s subsoil can provide it with cheap energy resources for many generations to come. Therefore, introduction of renewable energy sources that are unable to compete with traditional energy without a developed energy infrastructure and established production is impractical. In our study we try to evaluate the efficiency of the introduction of renewable energy sources in the Krasnoyarsk Territory of Russia using the example of the Chinese experience.

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Research Article Fri, 31 Jul 2020 00:00:00 +0300
Towards a new ecological and human type of national accounting for developing economies (the CARE/TDL model) https://brics-econ.arphahub.com/article/24179/ BRICS Journal of Economics 1(2): 41-58

DOI: 10.38050/2712-7508-2020-9

Authors: Jacques Richard

Abstract: The goal of this article is to propose a radical reform of the today’s financial accounting system of businesses accompanied by a corresponding reform of the system of national accounts. It transforms them into genuine ecological and human systems of accounts that can systematically conserve the three main types of capitals which are necessary for the functioning of any economic system. This is a radical means of overcoming the dramatic ecological and human crisis in which the humanity is buried today. This can be done by applying traditional weapons of capital conservation, invented at the end of the Middle Ages by big capitalists for the protection of their financial investments, to human and natural capital. We notably use the famous double entry accounting depicted by Werner Sombart and Max Weber like certain martial arts use the force of the adversary against him. As a result, we come to a complete redefinition of the main concepts of the economics, especially the concepts of capital, profit and market, and to the possibility of a new type of firm management that allows us to get out of the capitalist system.

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Research Article Fri, 31 Jul 2020 00:00:00 +0300
Contemporary global economic crisis: Some conclusions for Russia and BRICS (taking into account Kondratieff long waves) https://brics-econ.arphahub.com/article/24178/ BRICS Journal of Economics 1(2): 25-40

DOI: 10.38050/2712-7508-2020-8

Authors: Viktor Tatuzov

Abstract: The article is devoted to the origins of contemporary economic crises (2008–2020). The author suggests a relatively novel approach to the study and forecasting of the economic life of the BRICS countries and other regions within the framework of the modern Kondratieff long waves hypothesis. The author recalls that in the mid-twenties, after analyzing the results of a sufficiently deep crisis in 1920–1921, Kondratieff drew a conclusion that even more destructive perturbations in the world economy were approaching (having thus predicted the Great Depression of 1930s). In particular, Kondratieff wrote about the downswing phase of a long wave – a long turbulent period of economic instability (a period of deep economic crises). According to some Russian economists, today’s preservation of the downswing phase was correctly predicted in the framework of modern modifications of Kondratieff’s theory. Based on the hypothesis of long waves, the author predicted the global economic crisis of 2008–2010 in2006, and in the summer of 2014, he predicted many turbulent years for Russia (in particular, economic crises). The author warned of a possible aggravation of the global situation in early 2019, and such aggravation happened in 2020. Taking into account Kondratieff long waves, some new risks for the BRICS countries are analyzed in this article. In particular, the author argues that by the end of 2020, Russia’s real GDP may considerably shrink. In 2020, Russia seems to be able to take into account and use the previous experience of other BRICS countries which largely succeeded in mitigating external shocks in 2009 (for example, the experience of China and India).

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Research Article Fri, 31 Jul 2020 00:00:00 +0300
In search of the contours of the post-COVID Sustainable Development Goals: The case of BRICS https://brics-econ.arphahub.com/article/24175/ BRICS Journal of Economics 1(2): 4-24

DOI: 10.38050/2712-7508-2020-7

Authors: Sergey Bobylev, Leonid Grigoryev

Abstract: The global COVID-19 pandemic and an unexpected recession of a dangerous magnitude have provided strong reasons to look at the Sustainable Development Goals (SDGs) from three points of view: the SDGs as a victim of the recession 2020; the SDGs as an opportunity for better coordination on the way out of recession; and the SDGs as an object of modernization for better adaptation to the realities on “the global ground”. The BRICS countries are, naturally, the primary group of interest for developing and implementing the SDGs on the global scale as a way of catching up. “Pandemic protocol” and additional indicators are proposed as an urgent update to several SDGs.

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Research Article Fri, 31 Jul 2020 00:00:00 +0300
Demographic situation in China: Convergence or divergence? https://brics-econ.arphahub.com/article/24161/ BRICS Journal of Economics 1(1): 81-101

DOI: 10.38050/2712-7508-2020-6

Authors: Irina E. Kalabikhina, Ekaterina Shatalova, Lieming Fang

Abstract: The purpose of this study is to locate the presence of convergence in the demographic development of Chinese provinces during the end of the demographic transition at the turn of the millennium. We have estimated sigma and beta convergence in fertility, mortality, urbanization, and population ageing basing on the official Chinese statistics for 31 provinces of China. Our results show that the regional convergence in the above indicators has not been sustainable. It was observed only in certain periods, except for the urbanization process. Convergence was accompanied by a catching-up effect in such periods when “lagging” provinces were passing the demographic transition relatively quickly. The paper can serve as a contribution to the regional demographic and economic policy of China, since the issue of the dynamics of the regional demographic development differentiation is the basis for demographic and economic projections and development of local policy measures. The demographic divergence that we discovered in the last decade can determine an obstacle to the sustainable development of the country in the near future.

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Research Article Wed, 15 Apr 2020 00:00:00 +0300
The new industrial policy: A chance for the BRICS countries https://brics-econ.arphahub.com/article/24160/ BRICS Journal of Economics 1(1): 60-80

DOI: 10.38050/2712-7508-2020-5

Authors: Alexander A. Kurdin, Andrey Shastitko

Abstract: This paper is aimed at investigating the ways of overcoming imbalances concerning competition and industrial policies. The central principles of combining industrial and competition policies have been formulated on the basis of a discussion of challenges and opportunities for interaction in the field of industrial and competition policies in developing countries in general and BRICS in particular. When setting priorities, it is essential to pay attention to those sectors that demand highly qualified resources and that are characterized by relatively strong competition; industrial policy design should be more competition- and innovation-friendly, which, in its turn, means orientation at supporting companies on an equal basis instead of favoring one specific company; industrial policy should be based on a pragmatic approach that involves a cost-benefit analysis of providing assistance to a particular sector.

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Research Article Wed, 15 Apr 2020 00:00:00 +0300
Towards a new ecological and human type of national accounting for developing economies (The CARE/TDL model) https://brics-econ.arphahub.com/article/24159/ BRICS Journal of Economics 1(1): 43-59

DOI: 10.38050/2712-7508-2020-4

Authors: Jacques Richard

Abstract: The goal of this article is to show how today’s financial accounting system, notably the IFRS (International Financial Reporting Standards) and the related National accounts (primarily the famous GDP, Gross Domestic Product), are the main causes of today’s human and ecological crisis. This assertion is justified on the basis of an historical survey of the development of capitalist accounting since the end of the Middle Age, the time of its foundation. We prove that, in the form it was invented by big capitalists at that time (and used until today), the concept of capital-debt to be conserved has nothing to do with the one used by economists of either classical, neoclassical, or marxist schools and that it is a very dangerous weapon against the interests of the mankind and ecology.

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Research Article Wed, 15 Apr 2020 00:00:00 +0300
The effect of reverse knowledge spillovers on the total factor productivity in emerging markets https://brics-econ.arphahub.com/article/24158/ BRICS Journal of Economics 1(1): 21-42

DOI: 10.38050/2712-7508-2020-3

Authors: Andrei Panibratov, Megan Fitzpatrick

Abstract: The aim of this paper is to shed the light on the phenomenon and mechanisms of knowledge spillovers from developed economies to emerging markets through the lens of productivity effects. We hypothesize on the impact of foreign R&D stocks on the total factor productivity growth in emerging markets and on the moderating effect of R&D stocks on the knowledge spillover effects. We use panel data from 38 countries for the period of 2001–2014. Our findings suggest that firms investing in developed markets are able to improve TFP growth via reverse spillovers. Two important findings having managerial value are that, on average, the effect of OFDI on productivity becomes apparent three years after the initial investment. The study also indicates that investment efforts have a negative effect on TFP growth in the year of investment. This research contributes to the existing literature by analyzing bilateral FDI stocks between emerging and developed markets and the impact of both traditional and reverse spillovers on TFP growth in developing economies.

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Research Article Wed, 15 Apr 2020 00:00:00 +0300
The quality of competition law institutions and enforcement (Some comparative empirical evidence from BRICS and other countries) https://brics-econ.arphahub.com/article/24155/ BRICS Journal of Economics 1(1): 6-20

DOI: 10.38050/2712-7508-2020-2

Authors: Vasiliki Bageri, Yannis Katsoulacos

Abstract: Empirical work on the influence of competition policy relies on the construction of indicators for measuring certain attributes of the relevant laws and institutions that can be hypothesized to influence the “quality” of these laws and institutions and hence their effect on competition and economic performance. This paper contributes to the methodological literature on indicators of the quality of Competition Law Institutions & Enforcement (CLI&E) and to the empirical literature relating to the measurement of these indicators in different countries. It presents the results of a recent empirical study, which objective has been to measure indicators of the quality of CLI&E, using data collected through a Questionnaire based survey of competition authorities in a large number of countries and data available from international organisations for these countries. The measurement of the indicators relies on a new methodology that focuses on the factors influencing the extent to which CLI&E improves competition and so enhances economic performance. The overall conclusion is that the three BRICS countries included in our survey (Brazil, Russia and South Africa) are coming closer to the advanced jurisdictions in terms of the specific features of the countries’ institutional and legislative set-up relating to CLI&E but still lag far behind in terms of the general conditions (economic, political, institutional, and socio-cultural) influencing the intensity of competition in a country.

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Research Article Wed, 15 Apr 2020 00:00:00 +0300
Editor-in-Chief’s introductory note https://brics-econ.arphahub.com/article/24154/ BRICS Journal of Economics 1(1): 4-5

DOI: 10.38050/2712-7508-2020-1

Authors: Marina Sheresheva

Abstract:

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Editorial Wed, 15 Apr 2020 00:00:00 +0300