DOI: 10.3897/brics-econ.7.e154361

Authors: Lindokuhle Talent Zungu

Abstract: This study aims to explore the impact of the BRIC trade agreement on economic growth in South Africa over the period from 2009Q1 to 2023Q4, taking into consideration the BRIC agreements on promotion of trade and investment, and enhancement of economic growth and sustainable development. The study uses South African time-series data to estimate a Bayesian Vector Autoregression (BVAR) model with hierarchical priors as it can deal with many problems in the data without exhausting degrees of freedom. It also handles dense parameterization by giving model coefficients a structure and making them as informative as possible. The results suggest that trade agreements have a positive impact on South Africa’s economy. They indicate that economic growth can be positively influenced by a 1% unexpected increase in imports, exports, and foreign direct investment from the BRIC partner countries. These findings mean that trade deals with the BRIC nations and the promotion of investment can significantly contribute to South Africa’s economic development. It has also been shown that SA’s government spending enhances growth and sustainable development. The positive impact of the BRICS partners’ imports, exports, and FDI on South African growth highlights the need for trade and investment integration. Policymakers should reduce trade barriers, enhance infrastructure, and improve the business environment to attract more FDI from the BRIC member countries. Strengthening trade agreements within BRICS can expand market access, boost industrial competitiveness, and increase technological transfer. Long-term strategies should create stable, open economies fostering innovation, employment, and sustainable growth.

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DOI: 10.3897/brics-econ.7.e162186

Authors: Vladislav Vertogradov

Abstract: This paper explores the development of competition in the Russian marketplace sector from 2016 to 2024. To assess market power and differences between major companies, the study uses Data Insight ratings, which include online sales volume, number of orders, and average order value. These indicators enabled the construction of a strength–variety (SV) matrix that integrates the Herfindhal–Hirschmann Index and the Linde Index. Drawing on Russian and international literature, this paper identifies four groups of factors underlying marketplace competitive advantages: pricing strategy, logistics, marketing and technological innovation. It then compares major market players, namely Wildberries, Ozon, Megamarket, AliExpress Russia, Yandex Market and Magnit Market, with respect to each of these factors. In the medium term, the combination of advanced technological solutions and flexible delivery services is expected to be the primary competitive axis, which suggests further research into the impact of digital transformation on market-share dynamics.

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DOI: 10.3897/brics-econ.7.e156373

Authors: Muzi Shoba

Abstract: The bilateral relations between South Africa and the United States are at a crossroads. Since the apartheid era, these countries have gone through different stages of cooperation and periods of tension. Today, although they consider each other strategic partners, the two countries are facing increased diplomatic disagreements. These disagreements arise from South Africa’s growing diplomatic alignment with China, Russia and Iran, which oppose US international policies, and its active involvement in the BRICS association. This paper argues that South Africa’s cooperation with China, Russia, and other BRICS countries strongly affects the US’s perception of the country and determines its policy towards South Africa. The paper maintains that the South Africa’s case against Israel before the International Court of Justice and the passage of the Expropriation Act have strained its relations with the United States. This led to concerns regarding the future of bilateral trade agreements, such as the African Growth and Opportunity Act (AGOA). The paper is framed around constructivist theory and uses a qualitative methodology based on secondary sources. It concludes that the China-Russia-BRICS factor is central to the current diplomatic tensions between South Africa and the United States, its strategic partner.

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DOI: 10.3897/brics-econ.7.e135199

Authors: Tryson Yangailo

Abstract: This study examines the impact of foreign exchange restrictions on economic stability and growth in developing countries with varying degrees of currency controls, including Zambia, Brazil, Chile, Colombia, Ghana, India, Indonesia, Nigeria, South Africa, and Tanzania. The research focuses on how these restrictions affect key macroeconomic indicators such as GDP growth, inflation, foreign direct investment (FDI) and the current account balance. Using the World Bank data from 1986 to 2022 and the Jamovi software, the study applies statistical methods to assess the impact of different levels of currency restrictions on economic outcomes. The results suggest that moderate restrictions generally contribute to a balance between economic stability and growth, while more severe restrictions may negatively affect FDI inflows and GDP growth, although they tend to stabilize inflation and the current account. This study highlights the complexity of exchange control policies and provides new insights into their effectiveness and trade-offs for policymakers.

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DOI: 10.3897/brics-econ.7.e151598

Authors: Tijani Forgor Alhassan, Gaukhar Kalkabayeva, Anar Kurmanalina

Abstract: The adoption and integration of artificial intelligence (AI) in Ghana’s and Kazakhstan’s financial sectors signifies a transformative change, driven by technological advancement and pursuit of greater efficiency, improved risk management and enhanced customer experience. The study provides a comparative analysis of AI adoption in developing countries, focusing on key areas such as banking, investment management, legal compliance and financial inclusion. AI adoption is gradually gaining attention in Ghana, where fintech start-ups and traditional banks are using AI for mobile banking, fraud detection, and credit scoring. However, challenges such as poor infrastructure, data security concerns and lack of a skilled workforce impede the widespread implementation of AI and its full realization. In contrast, Kazakhstan has made significant progress in adopting AI, driven by government initiatives, robust digital infrastructure, and growing fintech ecosystem. Financial institutions in Kazakhstan use AI for algorithmic trading, regulatory compliance and customer service automation, positioning the country as a regional leader in fintech innovation. Despite differences in the countries’ approaches to adopting AI, both economies face similar challenges, such as algorithmic bias, regulatory uncertainty and capacity-building needs. The present paper explains why tailored growth strategies are needed to address these issues. It highlights the importance of investment, public-private partnerships and legal frameworks in upskilling professionals and creating technological infrastructure. The two countries should develop roadmaps for AI-tailored growth policies in their financial sectors to ensure their effective adoption and implementation for financial development.

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DOI: 10.3897/brics-econ.7.e169938

Authors: Lubov Levaeva, Julia Zvorykina, Andrei Kalmykov, Sadhan Ghosh

Abstract: The paper discusses several aspects of Russian food sovereignty within the BRICS association, including the effectiveness of franchising systems, the use of trademarks and private labels, and issues related to packaging processing. The Food Security Doctrine of the Russian Federation aims to increase the export potential of agricultural products by developing domestic production and establishing long-term partnerships with international partners. This is an important factor in ensuring food sovereignty. Retail chains are an effective platform for promoting products from national suppliers. The success of international retail chain activities confirms the effectiveness of franchising systems in expanding business into foreign markets. Franchising is one of the most effective business models for developing export potential of the Russian firms in international markets. This study examines various franchise systems integrated by Russian and foreign retail chains into their operational activities. Most retail chains offer business-format franchises that involve requirements for store size, style, and assortment. One of the elements of franchising is the use of the firms’ own trademarks. These trademarks play a significant role in promoting goods in foreign markets, particularly private label products because they allow vendors to take into account the unique traditions and consumer preferences of each country where their business operates. Private labels are also one of the most flexible tools for effective operational activities as they help to regulate the supply chain at every stage, thus reducing costs. The paper summarizes data on consumers in the BRICS countries and identifies the characteristics of populations that are important for firms’ operational activities, including the average age of residents, religious and cultural diversity. Analyzing the specific features of a territory to identify potential business opportunities allows the retail chain to create an assortment that satisfies the needs of consumers in a particular trading area. Today, trade in food products generates a large amount of waste packaging worldwide. As important participants in supply chains, retailers play a role in regulating the types of packaging and its processing possibilities. When planning future activities, a trading company evaluates market conditions to forecast operational success. The paper examines factors affecting future demand and conducts a regression analysis of consumption patterns in the BRICS countries.

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DOI: 10.3897/brics-econ.7.e170868

Authors: Yang Jingjing, Shah Mir Mowahed, Mariam Reha

Abstract: In recent decades, the role of institutions has become a central topic of discussion among scholars and policy makers. This study used time-series data from Afghanistan between 1996 and 2024 to gain new insights into the impact of political instability (POI), corruption (COR) and government effectiveness (GEF) on economic growth. The results of Quantile-on-Quantile Regression and Wavelet Quantile regression reveal that POI, COR, and GEF have adverse and statistically significant effects on GDP growth across all quantiles and over long-term time periods. Event analysis through the interrupted time series technique shows that the key political events, including the Civil War (CW), the First Round of the Taliban Regime (FRTR), U.S.-NATO interventions (USN), the Second Round of Taliban Regime (SRTR), and Regime Changes (RCH), have had a negative impact on Afghanistan’s GDP growth. The immediate impact of the Soviet Union’s war is estimated to be positive. At the same time, Afghanistan’s GDP experienced negative growth during SUW, CW, FRTR, and RCH, while during USN and SRTR, the GDP growth was positive. Based on these findings, the paper discusses possible policy implications.

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DOI: 10.3897/brics-econ.7.e171174

Authors: Yanan Zhao, Elena Frolova

Abstract: ESG governance in emerging economies is facing a major challenge: the use of global standards is expanding rapidly, but institutional asymmetries, regulatory capacity constraints and ownership structures are limiting their effective implementation. Existing empirical research still focuses on developed markets, but firm-level data on ESG corporate governance for BRICS is still scarce, even though these countries play a crucial role in global sustainability transitions. Following the PRISMA framework, this study systematically reviews 45 peer-reviewed articles on ESG corporate governance in BRICS (2021–2025) indexed in Scopus and Web of Science. Using VOSviewer keyword co-occurrence analysis, we code evidence on governance mechanisms, theoretical frameworks, research designs, policy references, empirical outcomes and regional disparities. The findings show fragmented yet rising attention to the issue, with China and India relying on state-led frameworks and South Africa following code-based, market-oriented rules. Russia and Brazil display weaker visibility in English-language journals. Board composition, ownership concentration and executive incentives appear to be decisive, but enforcement is weakened by institutional gaps. Evidence clusters around the four themes: governance and performance, ESG and firm value, ESG and risk, gender and diversity. Theory application remains limited: stakeholder, agency and institutional theories are often cited but rarely operationalised. The study extends ESG governance research by incorporating cross-country institutional contexts into a comparative analysis. Practically, ESG governance requires a closer alignment between policy development and local capacity, stronger enforcement, and more diverse research approaches. Under the right conditions, the BRICS countries can contribute to shaping global ESG standards and advance sustainable development.

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DOI: 10.3897/brics-econ.7.e176467

Authors: Lilia Valitova, Marina Sheresheva, Dmitry Oskin

Abstract: This paper examines the fragmentation of global science and the changing role of the BRICS countries in international research collaboration under geopolitical pressure. Using bibliometric analysis of more than 688,000 semiconductor-related publications indexed in the Web of Science Core Collection (1965–2025), the study traces how the imposition of sanctions since 2022 has transformed global co-authorship networks. The findings demonstrate a structural shift from a previously integrated international scientific system toward a constellation of regional clusters. China has consolidated its position as the central node of the global publication network, assuming integrative functions once held by the United States and the European Union. India has increased its connectivity, strengthening ties within BRICS and with the Global South. Russia’s role has markedly declined following the suspension of collaboration with Western institutions, accompanied by a drop in joint publications. At the same time, Saudi Arabia and Egypt have emerged as new peripheral hubs, reflecting a reallocation of scientific collaboration toward countries not affected by sanction regimes. Network-metric analysis (degree, betweenness, closeness, and eigenvector centrality) confirms the polarization of the international research system. Sanctions have weakened traditional nodes while fostering new centers of influence within BRICS and the Global South. The paper concludes that sanctions have accelerated the regionalization of global science, transforming the semiconductor research landscape from a unified global network into multiple interconnected regional systems, each with its own core and sphere of influence.

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DOI: 10.3897/brics-econ.6.e153294

Authors: Fenghui Fan, Natalia Grigorieva

Abstract: This study examines pharmaceutical trade dynamics within the expanded BRICS10 grouping, comprising the original BRICS5 members (Brazil, Russia, India, China, and South Africa) and five countries that joined in 2024–2025: Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia (these five hereafter referred to as “BRICS Newcomers,” abbreviated as “Newcomers”). The 10 countries are collectively referred to as “BRICS10.” Focusing on 2012–2023, the study explores whether trade patterns within BRICS5, among Newcomers, between the two groups, and across BRICS10 reveal structural asymmetries or early integration signals. A 12-year country-level panel was built using United Nations Comtrade HS Code 30 data on pharmaceutical products. Missing values for Iran and Russia were filled using reclassified mirror statistics. Key indicators included compound annual growth rates (CAGR), trade balances, intra- and inter-group trade shares, and 1 080 dyad-level Trade Intensity Index (TII) scores. Data processing and visualization were conducted using R. In 2023, BRICS10 accounted for 9.7% of global pharmaceutical imports and 4.7% of exports. Intra-bloc trade was limited and uneven: 64.4% of the dyads were under-traded, with a TII of less than 1, and only 3.1% reached very high intensity (TII ≥ 15). India was the sole net exporter, while most members remained dependent on imports. Trade spikes driven by the pandemic were short-lived. This is the first time-series analysis of pharmaceutical trade between BRICS10 countries at the dyad level. It reveals structural imbalances and under-trading on a large scale, providing new evidence to support policies aimed at promoting regional pharmaceutical integration and enhancing health system resilience through South–South cooperation.

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DOI: 10.3897/brics-econ.6.e162459

Authors: Oluwafemi Adeboje, Frank Ogbeide, Isiaka Akande Raifu

Abstract: This paper examines the influence of financial sector reform on macroeconomic stability in 14 SSA countries by employing a traditional panel, dynamic panel framework, and causality tests on data from 2000 to 2021. It explores whether income groupings of the sampled countries in line with the World Bank classification matter for the outcomes of the analysis. The results suggest that financial reform policies can both induce and prevent economic instability. They increase instability in the lower-middle and upper-middle-income countries, as seen in the overall estimated dynamic panel models, but they reduce it in low-income economies. The static panel models produced similar results. It has also been shown that the rent from natural resources had uniformly damaging effects on the macroeconomic stability of all income groups in SSA, effectively confirming the “resource curse” thesis. Yet, the findings of the panel as a whole contradicted this, suggesting that revenue from natural resources can effectively play a role in stabilizing macroeconomic conditions. The results also suggest the existence of what can be called “a human capital-misery trap”, in which higher human capital development can lead to macroeconomic instability. Inflation was found to have a detrimental effect, and the impact of government interventions appeared to be mixed. This paper emphasizes the need for robust financial reforms and comprehensive policy measures in Sub-Saharan Africa (SSA), aiming to enhance the effectiveness, competitiveness, and stability of the financial sector and the broader economic landscape, which will require prudent management of natural resources.

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DOI: 10.3897/brics-econ.6.e154692

Authors: José Firmino de Sousa Filho, Gervásio Ferreira dos Santos, Luiz Carlos de Santana Ribeiro, Rodrigo Barbosa de Cerqueira

Abstract: This paper examines the involvement of Brazil, Russia, India and China (BRIC) in the global value chains (GVCs) between 2000 and 2014. It focuses on domestic value-added exports and vertical specialization. We use WIOD tables to assess the position of these countries in GVCs and a decomposition of their trade in terms of value added. China exhibits substantial growth in all indicators, whereas the other countries’ results appear to be mixed. The study also considers the economies of Mexico and South Korea, highlighting Mexico’s declining participation in GVCs in contrast to the steady growth of South Korea’s involvement. To ensure sustained long-term economic growth, the BRICS countries and other emerging economies should create a common growth agenda and increase their participation in global value chains. The paper provides insights into the dynamics of trade and vertical specialization and thus contributes to better understanding of economic relations between the BRICS countries and other emerging economies.

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DOI: 10.3897/brics-econ.6.e144680

Authors: Patrick Nahabwe

Abstract: This study investigates debt-to-pay-debt syndrome in Uganda from 1980 to 2022 using a quantitative approach with ARIMA modelling to evaluate public debt sustainability. Balanced time series data from the World Bank is analysed with public debt (% of GDP) as the dependent variable, incorporating autoregressive (AR) and moving average (MA) components as independent variables. Parameter estimation is conducted using Maximum Likelihood Estimation (MLE), with diagnostic tests ensuring model robustness. Results show that the AR(1) coefficient (0.350489), is positive and statistically significant, meaning that 35% of the current year’s debt is used to service the previous year’s debt. This finding confirms the persistence of the debt-to-pay-debt cycle in Uganda. The estimated ARIMA (1, 1, 11) model is both covariance stationary and invertible, making it reliable for forecasting public debt trends over the next decade. Forecasts suggest that the debt-to-pay-debt pattern will continue unless corrective measures are taken. The study recommends implementing comprehensive debt management policies to reduce reliance on new borrowing. This includes enforcing stricter fiscal rules and promoting revenue diversification through emerging sectors such as digital economies, agricultural value addition, mineral resources, and oil and gas.

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DOI: 10.3897/brics-econ.6.e147499

Authors: Ivan Nosov

Abstract: The current state of international economic relations has intensified discussions surrounding various scenarios for financial convergence among the BRICS countries, including the potential adoption of a common currency or alternative means of payment. This paper explores the application of the C-means fuzzy clustering method to assess whether the economies of six BRICS countries — Brazil, Russia, India, China, South Africa, and Indonesia — exhibit homogeneity with respect to the criteria for an optimum currency area. To achieve this objective, the C-means fuzzy clustering model is applied to a set of economic indicators calculated for each BRICS member state and for a control group of non-BRICS economies, measured relative to those of a designated reference country. Each of the BRICS countries sequentially assumes the role of the reference country. The analysis focuses on how both BRICS and control countries are distributed among the resulting clusters. The findings indicate that the BRICS economies do not demonstrate homogeneity based on optimum currency area criteria because the largest economy in the group — the People’s Republic of China — frequently does not cluster with the other BRICS members. These results provide insights for ongoing discussions about the feasibility of a common BRICS currency by broadening the analytical framework and aiding policymakers in assessing the potential benefits, costs, and implications of deeper monetary integration within the group.

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DOI: 10.3897/brics-econ.6.e146580

Authors: Lumengo Bonga-Bonga

Abstract: This paper contributes to the literature on the policy trilemma by evaluating potential policy combinations for the original BRICS within the framework of the Impossible Trinity. It also introduces a novel modelling approach that defines a boundary for the linear combination of variables associated with the policy trilemma. The findings reveal that the trilemma emerges from the interplay of these three policy dimensions. Given the global influence of the BRICS countries, the results suggest that, if they maintain a fixed exchange rate system, they will likely have to sacrifice either free capital movement or independence from monetary policy. This loss of flexibility could be particularly detrimental, considering their significant international influence and their role as major recipients of capital flows for trade and financial transactions. Consequently, the optimal policy combination for BRICS is free capital flow, monetary independence, and a flexible exchange rate.

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DOI: 10.3897/brics-econ.6.e162066

Authors: Sergey Bobylev, Dmitrii Rakintsev, Alina Zolotukhina

Abstract: Over the past five years, the BRICS countries have actively worked to develop and implement joint measures to mitigate climate change and adapt to other environmental risks. However, achieving significant results in these areas is impossible without the use of modern economic tools to financially support environmental and climate initiatives. This study examines the challenges and opportunities associated with the development and implementation of economic policies that aim to maximize the environmental potential of the BRICS countries. The paper proposes solutions to create a unified methodology for assessing ecosystem services within the BRICS framework, reveals the potential for creating a joint market and development fund for the BRICS ecosystem services, and describes the most promising economic tools that can be used to attract investments and rationally implement environmental projects.

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DOI: 10.3897/brics-econ.6.e149285

Authors: Simon Epor, Joseph Olorunfemi Akande

Abstract: Industrialization is as indispensable to the BRICS economies as they are to the global economy. Given the current focus on sustainable production and improvements in financial services, this study aims to analyze the impact of green finance and financial development on industrial growth, both individually and in interaction. Focusing on the five BRICS member states (Brazil, Russia, India, China and South Africa), the study covers the period from 2000 to 2023. Long-run estimates were obtained using panel FMOLS and DOLS estimators, and robustness checks were performed using the PCSE estimator and the Panel Dumitrescu and Hurlin (2012) causality test. The results of the long-run estimators suggest that the combined effect of green finance and financial development significantly benefits industrial growth in the BRICS countries. So far, green finance has overlooked their industrial sectors but its true flourishing is only possible if it is integrated into financial development policies. The research uses three long-run panel estimators — panel FMOLS, DOLS and PCSE — to confirm and validate its results. The validity of the PCSE estimator is assessed in terms of cross-sectional dependence. The results will inform the industrial, financial, and environmental policies of the BRICS countries.

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DOI: 10.3897/brics-econ.6.e145598

Authors: Vsevolod Zhirikov

Abstract: The study analyzes the transformation of the sectoral structure of foreign direct investment between Russia and China from 2014 to 2024 in the context of the «Turning to the East» policy and the changing dynamics of the global geopolitical situation. Using a comprehensive methodological approach, it carries out statistical analysis of the dynamic series of investment flows, structural analysis of the sectoral distribution of investment and qualitative analysis of institutional changes in investment cooperation. The empirical base consists of official statistical data, reports from expert analysis centres and materials provided by relevant government agencies in both countries. The results reveal the following dramatic shifts in the structure of Chinese FDI in the Russian economy: the shares of the extractive and agricultural sectors grew from $796.0 to $6215.3 million and from $2099.7 to $3256.4 million, respectively, while the share of manufacturing fell from 30% to 12.2%. A three-tier investment structure has emerged, dominated by the natural resources sector (over 40%). There has been a 54-fold increase in investment in high-tech sectors, although their share remains modest. The paper argues that the structural changes in investment cooperation were caused, first, by the Western sanctions against Russia after 2014, second, by China’s growing need for Russian energy resources and raw materials and, third, by the desire of Chinese investors to minimize risks by working with influential Russian elites. The cautious attitude of Chinese investors towards Russia’s high-tech sectors is explained by the risks of secondary sanctions, the technological gap between the countries and institutional barriers in Russia. Key obstacles include weak transport and logistics infrastructure in the Russian Far East, an opaque business climate, and the two countries’ diverging investment priorities. A new interaction model is emerging, prioritizing raw materials, agribusiness, and state-backed projects, while manufacturing is becoming less attractive.

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DOI: 10.3897/brics-econ.6.e153844

Authors: Yushi Zhang

Abstract: As key actors in China’s transition to a green economy, companies are aligning their business strategies with environmental, social, and governance (ESG) goals. However, there is still a lack of empirical evidence on how ESG performance impacts financial outcomes in emerging markets. This study seeks to fill this gap by investigating the relationship between ESG indicators and corporate financial performance using a panel dataset of Chinese A-share companies, listed on Shanghai and Shenzhen exchanges, over the period from 2013 to 2022. Employing a two-way fixed-effects panel regression model, the analysis confirms a significant positive association between ESG performance and financial outcomes at the firm level. Furthermore, heterogeneity analysis reveals that this positive impact is more pronounced among NSOEs than SOEs. This differential impact is attributed to NSOEs’ greater operational flexibility and responsiveness to market conditions in implementing ESG strategies. The findings contribute to the growing body of literature on ESG, offering a large sample of context-specific evidence from China and highlighting ownership structure as a critical moderating factor. These results have practical implications for policymakers and investors seeking to promote sustainable economic growth through ESG-based practices in emerging markets.

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DOI: 10.3897/brics-econ.6.e146851

Authors: Tryson Yangailo

Abstract: This study examines the links between agricultural and arable land use, access to electricity, economic growth, and demographic trends in several global regions, including sub-Saharan Africa, South Asia, East Asia and the Pacific, Europe and Central Asia, Central Europe and the Baltic States, Latin America and the Caribbean, and the Middle East and North Africa. The study hypothesizes that access to electricity moderates the relationship between agricultural land use, economic growth, and demographic trends, with regional disparities driven by differences in initial conditions such as infrastructure development and population dynamics. Using data from 2000 to 2022 from the World Bank database and Jamovi software, the analysis employs descriptive statistics, correlation, regression, moderation analysis, and Analysis of Variance (ANOVA) to explore regional disparities and identify challenges and opportunities for sustainable development. The results reveal significant regional disparities in electricity access, with regions such as Eastern and Southern Africa (31.8%) and sub-Saharan Africa (36.9%) facing significant electrification challenges compared to the near-universal access in Europe and Central Asia. Agricultural land use is a key determinant of economic stability, with South Asia having the highest percentage of agricultural land (56.7%), a pattern consistent with its agrarian economy. In contrast, the Middle East and North Africa faces significant constraints due to limited arable land (4.75%) and environmental challenges. The study also finds that regions such as Central Europe and the Baltics and East Asia and the Pacific have advanced agricultural practices and higher rates of urbanization, with less reliance on agriculture for economic stability. In addition, population growth shows a strong negative correlation with access to electricity (r = -0.834, p < 0.001), reflecting the demographic transition in developed countries where improvements in infrastructure coincide with lower fertility rates. Moderation analysis shows that in regions with low electricity access, such as sub-Saharan Africa, rapid population growth negatively affects GDP growth, but this effect is moderated by improvements in electricity access. Based on these findings, the study offers targeted recommendations for improving infrastructure, promoting sustainable agriculture, investing in human capital, and advancing inclusive urbanization strategies. These findings provide actionable guidance for policymakers seeking to address infrastructure deficits, reduce socioeconomic disparities, and overcome environmental constraints to achieve sustainable global development.

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DOI: 10.3897/brics-econ.6.e145573

Authors: Benjamin Bensam Sambiri, Noah Cheruiyot Mutai, Onyekachi Osisiogu

Abstract: Sub-Saharan Africa (SSA) has abundant natural resources and attracts substantial investment, especially from China, but sustainable growth remains limited. This study examines the persistent disconnect between resource wealth, foreign financing, and long-term economic performance in the region. Using 20 years of panel data from 31 SSA countries, we estimate seven econometric models — including fixed effects, dynamic panels, and instrumental variables (IV) — to assess the long-run impact of natural resource rents, Chinese investment, trade flows and foreign direct investment (FDI) on GDP growth.Exports are consistently associated with stronger economic growth. By contrast, Chinese investment does not show a robust effect across specifications. Natural resource rents have a weak or no correlation with growth, but become significant in the IV model, suggesting that their impact is mediated by institutional quality. Imports are negatively or insignificantly associated with growth until endogeneity is addressed, after which their effect turns positive indicating the importance of trade efficiency. FDI consistently correlates with lower growth, pointing to problems such as capital flight or extractive investment practices.This study challenges the assumption that Chinese finance and resource abundance are driving development in SSA. The findings highlight the critical role of effective governance, transparent resource management, and coherent trade and investment policies. Policymakers need to align external finance and natural resource use with institutional reforms to promote sustainable growth.

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DOI: 10.3897/brics-econ.6.e146809

Authors: Svetlana Semyshkina, Aleksandra Rodina

Abstract: Paradigm shifts in management, reflected in new management concepts, have become common in the modern world. According to some of these concepts, human relationships have taken over the fundamental role in the organization, the corporate structure is becoming more flexible and there is no longer room for tight control. This paper aims to analyze management paradigm shifts in terms of spiral dynamics. It follows from the literature that the generally accepted management concepts can be related to the levels of spiral dynamics. Evidence from the BRICS countries shows that, as the level of spiral dynamics increases, management concepts tend to become more people-oriented or humanistic. The paper contributes to the theory of management; its findings are also intended for practical use in managing change and issues related to organizational culture.

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DOI: 10.3897/brics-econ.6.e141639

Authors: Nyiko Worship Hlongwane, Hlalefang Khobai

Abstract: This study aims to investigate the impact of disaggregated renewable energy sources on life expectancy in the BRICS nations from 1990 to 2023, using linear, non-linear and non-parametric models. This research challenges long-held beliefs about the impact of renewable energy on human health. It reveals the intricate links between different energy sources and life expectancy in the BRICS countries. Based on the QPNARDL results, hydropower is found to harm life expectancy. Based on the PNARDL model, its impact varies across countries. Based on the SQR and PCSE models in the BRICS nations, however, it appears to have a positive impact on life expectancy. According to the QPNARDL, SQR and PCSE models, wind energy reduces life expectancy in BRICS nations. However, the PNARDL model shows that wind energy has a positive impact on life expectancy in Brazil and China, and a negative impact in India and Russia. Other Renewables, including bioenergy, boost life expectancy in the BRICS nations based on the SQR and PCSE models, while hurting life expectancy based on the QPNARDL and PNARDL models. The results suggest that the impact of renewable energy sources on life expectancy varies between countries and models. These findings have significant implications for policymakers managing the transition to renewable energy; they emphasise the importance of informed, evidence-based decision-making. The study recommends promoting hydropower, wind energy and other renewable energy sources, such as bioenergy, in the BRICS countries to increase life expectancy.

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DOI: 10.3897/brics-econ.6.e142921

Authors: Beauty Igbinovia, Shilo Samuel Akpan, Festus Omenihu Mbagwu, Umole Igienekpemhe Mohammad, David Umoru

Abstract: This paper analyses the asymmetric responses of manufacturing output to changes in exchange rates and bank credit in Nigeria. The results reveal significant countercyclical effects of exchange rate changes on manufacturing output. Bank credit to the private sector was the only predictor with procyclical effects on Nigeria’s manufacturing output. As these responses are often impacted by behavioural patterns, shifts in policy and economic fluctuations, the study employed the non-linear ARDL method alongside the Wald test, Quandt-Andrews and Zivot-Andrews tests. The results of the phase shift analysis show that in Nigeria, only private sector credit leads the manufacturing output cycle, while changes in the exchange rate, inflation and lending rates lag behind. Regardless of the timeframe, manufacturing output was adversely affected by positive and negative changes or variations in the exchange rate. Shifts in bank credit, whether positive or negative, had a positive and considerable effect on manufacturing production. The Wald test confirms the presence of asymmetry in the effects of the exchange rate and private credit on output. The Quandt-Andrews F-statistics for both the maximum likelihood ratio (LR) and Wald statistics, as well as the Zivot-Andrews intercept and trend test results, show that there were breakpoints in bank credit and exchange rate variations in different years, particularly in 2016 and 2020, which marked periods of economic recession, health pandemics, policy shifts, external shocks and macroeconomic instability, as measured by rising petrol pump prices. Neither model, with or without structural breaks, supports the conventional economic theory that devaluation leads to an expansion in output. This is attributed to the contractionary effect of naira depreciation in the context of significant foreign currency-denominated external debt. The negative output effect of naira devaluation in Nigeria was also explained by the low level of competition among domestic firms. In the short term, the results further account for the inflation-output trade-off in Nigeria’s manufacturing industry, while in the long term, the neutrality principle does not fully apply to Nigeria, whose financial market is still emerging, hampered by structural imbalances in the economy. To minimize arbitrage, the Nigerian government should implement financial policies capable of closing the gap between devaluation and appreciation of the naira exchange rates. Specifically, the monetary authorities should set credible inflation targets, and the rate of interest adjustment should align with these targets. This can be achieved by creating an autonomous central bank responsible for maintaining price stability. The research findings will be valuable to manufacturers, the financial sector and small and medium-sized enterprise (SME) owners, both in and outside Nigeria. SMEs and manufacturing industries can benefit from government funding, aid, or investment tax breaks. Such initiatives may take the form of reinvestment allowances, amortization allowances or cash-based grants.

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DOI: 10.3897/brics-econ.6.e141289

Authors: Sipho Mbatha

Abstract: Clothing, textiles, leather, and footwear (CTLF) sector of South Africa has been a priority sector for the government for almost two decades. However, the CTLF sector has not been able to achieve the reindustrialisation levels envisaged by the government and other stakeholders. It is therefore necessary to explore the possibilities of gaining competitive advantage and also understand the challenges facing the sectoral systems of innovation that impede the development of the CTLF sector in South Africa. Through the triple helix theory of innovation and Porter’s diamond model of competitive advantage, this review paper looks at the CTLF sectors of two BRICS nations, Brazil and South Africa, in an attempt to determine the factors that could jump-start the competitive development of the South African CTLF sector. This paper outlines proposals for improving the sectoral systems of innovation in South Africa’s CTLF industry, which should help it gain competitive advantage. It also makes a scholarly contribution to designing strategies that could be used to enhance collaboration among the BRICS nations.

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DOI: 10.3897/brics-econ.6.e141556

Authors: Gladys Fernandes-Gondoza, Ronney Ncwadi, John Manuel Fernandes, Farai Nyika

Abstract: Purpose: In this paper, we study the potential of using Artificial Neural Network (ANN) models to predict currency crises in emerging markets, with a specific focus on the South African economy. South Africa’s rand is one of the most volatile currencies in the world and is prone to crises. Methodology: We built two ANN models, where Model 1 uses ten economic indicators and Model 2 uses four. These models were assessed for statistical significance (using probit analysis), and their performance in predicting major South African currency crises (e.g., 1998, 2001, and 2008) was tested with both in-sample and out-of-sample data. Results: The first model was much more accurate than Model 2 in predicting early warning signs nearly two years before the currency crises occurred. Model 1’s higher accuracy is attributed to its inclusion of a greater number of economic variables. Both models occasionally produced false positives, though overall, they were very accurate in predicting crises. Originality: Our paper highlights the importance of ANNs in capturing nonlinear patterns in economic data, demonstrating their strength as early warning tools for financial crises. We recommend that ANN methods continue to be researched and advanced to further reduce false positives and improve predictive performance.

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DOI: 10.3897/brics-econ.6.e146935

Authors: Imran Ali

Abstract: This study examines the key economic, environmental and governance determinants of the Human Development Index (HDI) in Pakistan, using a multidimensional framework to analyze their long- and short-term dynamics. Using annual data from 1990 to 2022 the research applies Johansen Cointegration Test and Vector Error Correction Model (VECM) to assess the relationships between HDI and factors that may exert influence on its dynamics, including exports, remittances, military expenditure, carbon dioxide emissions, debt service, population growth, and women’s parliamentary representation. Its findings reveal that governance and demographic factors, particularly women’s representation in parliament and population growth, have significant positive impacts on the country’s HDI in the long run, highlighting the importance of inclusive governance and resource management. Conversely, economic variables such as exports and remittances appear to have negative long-term effects on the HDI, suggesting structural inefficiencies in Pakistan’s trade and remittance policies. Environmental degradation, represented by carbon dioxide emissions, poses a significant challenge with adverse effects on the HDI, in both the short and long term. Military expenditure demonstrates dual effect: while it supports the HDI in the long run by fostering stability, in the short run it diverts resources away from critical social investments. The study emphasizes the need for policy reforms to diversify exports, formalize remittance channels, and adopt sustainability-focused environmental strategies. To promote equitable development, it is essential to increase women’s representation in governance and balance the defense and social spending. This research contributes new insights by integrating economic, environmental, and governance dimensions into unified analytical framework tailored to Pakistan’s socioeconomic context and provides actionable recommendations for policymakers to prioritize sustainable and inclusive development initiatives in line with the global Sustainable Development Goals (SDGs).

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DOI: 10.3897/brics-econ.6.e136634

Authors: Tryson Yangailo

Abstract: This study explores the complex relationships between trade openness, CO₂ emissions, renewable energy consumption, GDP growth, and access to basic services in different economic contexts — developed, developing, and emerging economies. Using the World Bank data from 2000 to 2022, the study employs correlation and regression analysis to understand how these factors interact and affect sustainability and economic performance. The results show significant regional differences. Developed economies, characterized by high trade-to-GDP ratios, have lower CO₂ emissions but experience negative effects on GDP growth due to trade dependence. In contrast, emerging economies, with the lowest trade-to-GDP ratios, show smaller reductions in CO₂ emissions from trade and more pronounced environmental impacts. Developing countries with moderate trade ratios show mixed results in terms of economic and environmental outcomes. Renewable energy consumption emerges as a critical factor, especially in developing and emerging economies. In developing countries, high renewable energy use is positively associated with GDP growth and mitigates the negative impact of trade on carbon emissions. Emerging economies benefit significantly from increased investment in renewable energy, although their consumption remains moderate. Access to basic services such as sanitation and drinking water varies widely across regions. Developed economies enjoy high access, which supports stable economic conditions, while developing economies struggle with low access, which negatively impacts both economic and environmental outcomes. Emerging economies fall in between, requiring substantial infrastructure upgrades to improve sustainability. Gross capital formation has a mixed impact, with limited direct influence on CO₂ emissions and GDP growth, but remains critical to overall development. The study highlights the need for developed economies to reduce trade dependence and foster domestic innovation, for emerging economies to prioritize renewable energy investments, and for developing economies to balance renewable energy investments with infrastructure development. These findings are essential for policymakers seeking to integrate economic growth with environmental sustainability.

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DOI: 10.3897/brics-econ.6.e143810

Authors: Danil Fliagin, Mutiu Abdulganiyu

Abstract: The study examines the impact of the BRICS countries’ trade on the composition of their US dollar reserves using dynamic panel data analysis. The research aims to determine if the trade between the BRICS countries promotes currency diversification or reinforces their reliance on the dollar. The paper adopts a dynamic panel data model using the Mean Group (MG), Pooled Mean Group (PMG), and Dynamic Fixed Effect (DFE) estimators for annual data from 2006 to 2022. The empirical results reveal a short-term currency diversification away from the dollar, which may be caused by intra-BRICS non-dollar trade agreements. Yet, the analysis gave no conclusive evidence of currency diversification in the long term. The Hausman test points to the PMG estimator as the most efficient, confirming robust model reliability. These findings indicate a complex interaction between trade and reserve dynamics, driven in part by the BRICS efforts to reduce dependency on the dollar as a vehicle currency. This study is among the first to apply dynamic panel data models to explore the impact of BRICS trade on the member countries’ US dollar reserves. It combines MG, PMG, and DFE estimators to assess the short-term and long-term effects of the trade, thus offering new insights into the dual nature of trade impacts on currency reserves and emphasizing the strategic role of BRICS in the global financial landscape.

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DOI: 10.3897/brics-econ.6.e138454

Authors: Palesa Lefatsa, Gabila Nubong

Abstract: The paper presents an empirical study of the relationships between financial development, economic growth, urbanisation and energy consumption in the Southern African Development Community for the years 1980 to 2023. The researchers applied the Bayesian approach via Metropolis-Hasting and Gibbs samples as the MCMC methods, and Dumitrescu and Hurlin (2012) and Diagnostic tests to check the causality among all the variables in question and accuracy of the data and model. Over time, there has been a significant positive correlation between financial development, economic growth, industrialization, urbanization, and energy consumption. The results of the Granger causality test showed a unidirectional causal relationship between financial development, urbanization, and energy consumption supporting the alternative hypothesis that there is a relationship between financial development and energy consumption in the Southern African Development Community. It has been found that there is a Bi-directional (feedback) Granger causal relationship between economic growth and energy consumption in the Southern African Development Community; this also supports the alternative hypothesis. The results align with endogenous growth theory, which emphasizes that economic growth is driven by internal factors such as capital accumulation, innovation, and improved efficiencies, where energy plays a significant role. This also supports the view that energy infrastructure development is vital for sustaining economic growth in the region. The diagnostic tests confirm that the model is correct.

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DOI: 10.3897/brics-econ.6.e145277

Authors: Diana Mikhajlenko, Natalia Kononkova

Abstract: This paper examines the sharing economy as an advanced model of interaction between economic agents that helps them mitigate resource constraints and rapidly meet producers’ and consumers’ needs in the face of new challenges. We found the benefits of collaborative consumption, or sharing, to be largely determined by the level of trust in society, development of technological base and adaptation of legal framework to digital transformation of the national economy. Based on the evidence from Russia and Brazil, we classify the factors that determine the sharing economy development and identify effective instruments of regulating sharing relations. The results indicate that regulatory “sandboxes” appear to be most appropriate as they allow participants to test innovations of substantial public importance that lie outside the scope of existing legislative norms.

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DOI: 10.3897/brics-econ.6.e140615

Authors: Rafik Smara

Abstract: This study investigates how small and medium-sized enterprises (SMEs) achieve and manage innovative ambidexterity through their dynamic capability, addressing potential imbalances in changing environments under resource constraints. Employing a comparative case study approach, the research draws on qualitative, in-depth interviews with CEOs and founders of four Russian SMEs operating in the Information Technology (IT) sector, selected from a larger cohort. Key capabilities were identified for each phase of the dynamic capability process. In the sensing phase, essential capabilities include cultivating dynamic technological and marketing skills, problem-solving proficiency and commitment to continuous learning with real-time awareness. In the seizing phase, the emphasis shifts to enhancing capabilities through learning, fostering innovation-driven culture, empowering employees, providing continuous training, promoting active collaboration at all levels, and recognizing achievements through team rewards. During the reconfiguration phase, adaptive decision-making, resource and coordination flexibility and future-oriented innovation and partnerships become critical. These capabilities contribute to a balance of exploratory and exploitative innovation within SMEs enabling the achievement of innovative ambidexterity. Throughout this process, potential imbalances are managed by leveraging critical capabilities such as clear goal-setting and performance feedback, culture of openness, trust, and mutual support, and adaptive decision-making with wise allocation of firm-specific resources. Through our findings, we advance the understanding that ambidexterity is achievable for resource-constrained SMEs in uncertain environment under external constraints, offering insights into dynamic capabilities that enable such attainment.

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DOI: 10.3897/brics-econ.6.e142016

Authors: Marina Latukha, Tatiana Pitubaeva, Daria Khasieva, Anna Kriklivetc, Kaifeng Yan

Abstract: The paper explores the role of external mentoring as a strategic talent attraction tool in the context of talent shortages and describes the ways in which it can help firms to find new candidates, especially among young graduates, at the same time developing its own employees. The authors conducted 21 in-depth interviews with experienced mentors from multinational companies in Russia and one expert interview. Content analysis was used to identify the key themes related to the effectiveness of external mentoring. External mentoring significantly enhances employer branding, knowledge exchange, learning and professional development. The critical components of success are voluntary participation, non-monetary recognition and long-term trust-based relationships between mentors and mentees. The paper also identifies the challenges that external mentoring may encounter and essential criteria for selecting mentors and mentees. The authors conceptualize external mentoring as a novel approach to talent attraction extending beyond internal employee development. The study provides fresh insights into resolving talent shortages and creating external talent pools, thus contributing to talent management and mentoring literature.

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DOI: 10.3897/brics-econ.6.e142466

Authors: Andrei Panibratov, Alexey Kalinin, Dmitrii Fefelov, Yu Tian, Kaifeng Yan, Yunping Wang

Abstract: The Belt and Road Initiative (BRI) has garnered significant attention over the past decade. This expansive project promises lucrative opportunities and a potential boost to global trade. However, infrastructure, policy, and strategic challenges pose risks to its international success. This study examines the forces driving the growth of e-commerce supply chain companies participating in the BRI, focusing on China and Russia as research context. Using the Value Chain theory, we explain how combination of its primary and support activities influences the development of international supply chains within the BRI. We employ a multilinear regression model to test the proposed framework, with an ANOVA model to verify the robustness of our findings. The results reveal that primary and support activities have different significance within BRI collaboration. Exogenous factors, particularly industrial and municipal policies, as well as infrastructural development, are the key drivers of e-commerce success in the BRI supply chains. This study contributes to the growing body of literature on the BRI by providing empirical evidence of the factors influencing e-commerce growth in participating countries. Our findings offer insights for firms and policymakers seeking to capitalize on the opportunities presented by the BRI and highlight the areas requiring attention to ensure its long-term viability and success.

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DOI: 10.3897/brics-econ.6.e138160

Authors: Yang Jingjing, Shah Mir Mowahed, Mohammad Wais Sharif Zada

Abstract: Stabilizing the Consumer Price Index (CPI) to protect the populace from the adverse effects of inflation necessitates appropriate measures at both political and economic governance levels. This study examines the impacts of imports (IM) and exports (EX) on inflation (CPI) in Afghanistan using data from 1990 to 2023. The findings from the Autoregressive Distributed Lag (ARDL) model indicate that both IM and EX significantly impact CPI in the short and long term. A robustness check employing the Kernel-based Regularized Least Squares (KRLS) machine learning technique further validates these results. The analysis confirms that international trade has a substantial and positive effect on CPI. Additionally, in the context of Afghanistan, political instability acts as a positive moderator, amplifying the influence of imports and exports on inflation. The study concludes that the country requires a reevaluation of its policies regarding exchange rates and economic growth to mitigate the negative effects of imports, exports, and political volatility on the stability of the CPI.

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DOI: 10.3897/brics-econ.6.e142917

Authors: David Umoru, Enike Imran Abu, Beauty Igbinovia, Georgina Asemota, Ahinkweokhai Igbafe, Henry Imogiemhe Idogun

Abstract: This research aims to investigate the influence of stock market volatility and liquidity turnover on returns in the emerging markets of Middle East and North Africa (MENA countries) using the interaction of global economic policy uncertainty index and exchange rate as a moderating variable. The paper employs panel quantile regression with daily data from January 1, 2000 to August 30, 2024 and a panel quantile regression sensitivity analysis. The findings suggest that the U. S. economic policy uncertainty index was markedly negative; the negative and significant interaction coefficient between the variables of exchange rate fluctuations and worldwide economic policy uncertainty indicates that stock returns of the MENA markets dropped substantially in response to international economic policy uncertainty; the more extensively the exchange rate fluctuated, the lower were the returns. Empirical evidence reveals shifting dynamics in the impact of short-term interest rate volatility on returns as we move from the period before the pandemic outbreak to the post-pandemic era. The study has notable implications for financial investors. Markets’ response to interest rate volatility cannot be predicted with high degree of certainty because the market reacts spontaneously to adjustments in the short-term interest rate even when market players operate rationally and base their decisions on all available information regarding stock prices. As a result, investors may choose to consider selecting shorter-life alternative equities as a long-term hedge against interest rate volatility risk. The MENA countries’ central monetary authorities and governments should work jointly to maintain stock market stability by enacting measures to make stock exchanges and the equity markets more resilient to the negative effects of uncertainty brought on by foreign economic policy, even as exchange rate volatility rises. Additionally, international business entities and traders could also shield themselves against international economic policy-related risk of uncertainty in the midst of currency volatility given the current research.

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DOI: 10.3897/brics-econ.6.e136888

Authors: Arshad Mokhammad

Abstract: The ongoing digital transformation provides an infrastructural basis for multi-level networking. The United States and China as the leaders in designing long-term social and economic development strategies pay serious attention to technological sovereignty and sustainable interaction between the corporate and public sectors that are impossible without reliable digital infrastructure. Digital platforms have become its most important component, creating prerequisites for the formation and development of various network structures. The paper discusses the subordinate effects resulting from the development of digital platforms as part of digitalization. Today, global value chains are being transformed, changing the global reproduction system; the reproduction process is also influenced by digital transformation; technological development and innovations bring new opportunities and transform all aspects of socioeconomic interaction. The methodological basis of the study is constituted by the system approach, comparative analysis and statistical methods. The paper examines the prospects of digital platforms in the PRC both for the national economy and international cooperation and proposes guidelines on their strategic development. It describes the specific features of financing their formation and systematizes the characteristics of networking in the sphere of e-commerce, cloud services and investment cooperation. Addressing the social aspect of using digital platforms, the study emphasizes the importance of social monitoring and migration controls that give the country a competitive advantage in developing and testing the technologies involved. It also shows that platform employment and digital poverty create multidirectional trends affecting the country’s economic development.

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DOI: 10.3897/brics-econ.6.e136887

Authors: Aleksandr Ivanov

Abstract: This paper concerns Corporate Social Responsibility (CSR) employer branding and its impact on employee attraction and retention, seeking to systematize academic knowledge about their interconnections and links to other important management issues. We made a systematic literature review focusing on empirical papers published in academic journals over the last 10 years, which enabled us to identify the directions of contemporary research, commonly used methodologies and contexts explored. It shows that CSR initiatives are increasingly recognized as a critical dimension of employer branding. Alignment of CSR practices and employer branding strategies is essential for attracting top talent. We also observed a strong link between CSR and employer attractiveness, career development, organizational identification, corporate reputation and person-organization fit, which underscores the multifaceted nature of CSR employer branding. It has been found that CSR researchers predominantly use quantitative methodologies in their studies and tend to explore the firms that work in the IT industry. The paper discusses the current state of CSR employer branding research and outlines possible avenues for future studies.

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DOI: 10.3897/brics-econ.6.e134961

Authors: Ayodeji Ajibola

Abstract: The paper investigates the relationship between corporate governance and organizational performance in Nigeria’s banking sector between 1996 and 2023, using the Tobin-Q valuation and operating performance methodology (quantitative characteristics) of variables in analyzing data collected from secondary sources. The internal mechanisms of corporate governance such as Returns on Assets (ROA), shareholder profit and Debt-Equity ratio had a negative impact on organizational performance. The study into forecast and long-term co-integration relationship between corporate governance mechanisms and organizational performance has shown that the enhancement of organizational performance by corporate governance mechanisms is likely to experience a steady increase after 2023.

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DOI: 10.3897/brics-econ.6.e128607

Authors: Imran Ali, Vladislav Gusev, Linara Khadimullina

Abstract: Economic landscape of Pakistan is determined by an extremely complex interaction of domestic and global forces; navigating it successfully requires a clear understanding of its character. The paper explores the dynamic relationships between macroeconomic variables and GDP growth in Pakistan using the Autoregressive Distributed Lag (ARDL) model and other stability tests using time series data from 1980 to 2022. The analysis includes variables representing GDP per capita, inflation, imports, total debt as a percentage of GDP, total population, and forestry and agricultural output. The correlation matrix shows a positive association between GDP growth rate and GDP per capita, total debt service is inversely correlated with total population, and GDP demonstrates a significant negative correlation. The ARDL results indicate that GDP per capita and the agriculture and forestry sectors are significant drivers of economic growth. Over the period in question, inflation only marginally affected GDP growth showing how important it is to maintain price stability through effective policies. Imports provide short-term benefits by enhancing productivity through capital goods and technology inflows but they may pose long-term challenges due to trade imbalances. The influence of population growth appears to be ambivalent: in the short term it contributes to economic growth by increasing labor supply and consumption; in the long term, however, its effect may become detrimental owing to resource constraints. Public debt shows little influence in the short term but negatively impacts growth over time by increasing the fiscal burden of debt servicing. These findings suggest that to achieve long-term economic stability and growth, the country needs targeted policy interventions that should help it control inflation, manage the debt sustainably, optimize imports, and invest in agriculture, which is an important determinant of GDP growth. Future research should concentrate on sector-specific studies and the effects of political stability on economic growth in order to provide deeper insights contributing to Pakistan’s sustainable economic development.

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DOI: 10.3897/brics-econ.5.e131085

Authors: Byelongo Elisée Isheloke

Abstract: South Africa (SA) joined BRICS in 2010. The study explores the impact of its partnership with the BRICS group on mineral beneficiation in South Africa (SA) from its inception. The BRICS association, that had originally sought to deal with economic issues the founding members faced, became a full-fledged “umbrella organization”, which factors into its engagements a variety of issues including those of policy and polity, economy and culture and certainly the relations between the member countries. The study culminates in designing a Mineral Beneficiation Model proposed to South Africa with the aim to enhance the cooperation between Brazil, Russia, India, China and South Africa in mining; beyond that, it addresses issues pertaining to the aftermath of the association’s metamorphosis into BRICS Plus. In South Africa, up to 54 different minerals are extracted from its mines every day, of which a huge quantity is exported abroad to the detriment of local beneficiation entrepreneurs. The BRICS Business Council has previously identified three priorities: infrastructure development, mining beneficiation and mineral beneficiation. At that time, the mining sector contributed around 8% to the South African GDP, but there was not no agreement upon mineral beneficiation model. The involvement of BRICS partners in the extractive industry, however, required interventions to promote mining synergies. The authors sought to develop a model based on the data collected mainly through interviews and questionnaires. The study targeted 79 mining and related companies. A 30% response rate was achieved for the quantitative part of the study and 80% of participants, company representatives among them, were interviewed. The study has shown that South Africa needs to embrace beneficiation and achieve synergy effects when working with the other BRICS Plus members.

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DOI: 10.3897/brics-econ.5.e125507

Authors: Gabila Nubong

Abstract: Foreign Direct Investment (FDI) in Southern Africa has been one of the drivers of infrastructure development and economic growth, especially in mining, agriculture, energy, information, and communications technology (ICT). Some of the SADC countries have undertaken serious economic and institutional reforms to encourage the inflow of FDI, particularly to low-income countries of the region, but these efforts have not so far led to the expected increases in investment: the overall amount of FDI remains low, it is concentrated in very few countries and mostly goes to the extraction of natural resources. Institutions and infrastructure development typically have a positive effect on FDI inflows as they improve investment climate. To examine their role in boosting the FDI flows to the SADC countries, the paper uses panel data econometric analysis with OLS and PCSE. Its results show that the quality of governance, together with the level of economic development, market size, and openness to international trade are the main factors that determine the amounts of FDI flowing into the SADC countries. For some areas, however, the primary need is to combat the rampant corruption and reduce political instability.

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DOI: 10.3897/brics-econ.5.e137243

Authors: David Umoru, Rafat Hussaini, Beauty Igbinovia, Enike I. Abu

Abstract: The fixed and floating exchange rate systems exhibit essential differences. The paper attempts to provide empirical clarification concerning the type of exchange rate regime that has the most favourable impact on stock market returns and prices of the BRICS and African markets using the GLM regression method. The results are based on the inverse Gaussian functions and also identity and 1og functions of the estimated generalized linear model. The fixed exchange regime impacted adversely and significantly on the stock prices of both stock markets. The floating regime impacted favourably and significantly on the stock prices of the BRICS and African stock markets at the inverse Gaussian and Gamma identities. Whereas the fixed regime impacted adversely on stock returns of the BRICS markets at Gaussian identity, it impacted positively but rather insignificantly on the performance of stock returns of African markets. For African stock markets, both the floating and fixed regimes impacted stock returns positively, but the impact of the fixed regime is significant and also of a higher magnitude compared to that of the floating regime (17.313>10.885) HIV and Covid-19 deaths have significant inverse effects on stock prices of African stock markets. For the BRICS markets, the effect of Covid-19 on prices and returns was negative but insignificant. Only stock return effect of HIV was adverse and significant for the BRICS markets. The research findings will be useful for financial marketers involved in international financial trade and seeking to align with developments in international financial markets.

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DOI: 10.3897/brics-econ.5.e139618

Authors: Marina Malkina, Dmitry Rogachev

Abstract: The paper explores the financial contagion of the Russian stock market from the Chinese stock market during the global COVID-19 pandemic. Its objectives are to confirm or refute the contagion of these markets during the acute phase of the pandemic and establish the direction, intensity and types of contagion. The study employed average daily values of the RTSI (Moscow exchange) and HSI (Hong Kong stock exchange) indices. To distinguish between the period of exposure of the two countries’ assets to an external shock and the period of relatively calm markets, we calculated the moving normalized coefficients of variation. To test for the presence of contagion, we constructed vector autoregression (VAR) models for the logarithmic returns RTSI with an exogenous variable of the logarithmic returns HSI in the pre-crisis, crisis and post-crisis periods, estimated the coefficients for HSI and established their significance. The intensity of contagion was determined by the change in the contribution of the tested variable (HSI) to the variance of the dependent variable (RTSI) during the crisis period compared to the pre-crisis and post-crisis periods. The Granger causality test allowed us to establish the direction of contagion; the types of contagion were identified using the method of co-moments of return distribution. The study confirmed the existence of contagion from Chinese to Russian stock market during the acute phase of the pandemic and proved its directionality (HSI→RTSI), and the decomposition of the coefficient of determination established the intensity of the contagion. In the post-crisis period, market interdependence was observed, caused by incompleteness of the pandemic crisis and changes in contagion foci. Contagion during the crisis occurred in the form of an increase in the lower co-moments of distribution (the impact of HSI returns on RTSI returns, volatility and asymmetry) compared to the pre-crisis period, and manifested itself in the upper co-moments of distribution and market anomalies compared to the post-crisis period. The research results may assist in formulating policies aimed at maintaining financial stability; they will also be useful for investment portfolio optimization.

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DOI: 10.3897/brics-econ.5.e132092

Authors: Lyubov Ganeeva, Alexandra Nikiforova

Abstract: The paper explores the potential for cooperation between the BRICS+ countries in digitization of international sports; it seeks to identify the most promising ways of joint action to advance the use of digital tools for the development of the Olympic movement. The research objective is to determine forms of digital diplomacy for the BRICS+ members that may assist Russia in promoting its Olympic activities. Based on the data from the United Nations’ “e-Government Knowledge” (United Nations, 2022), the Ministry of Digital Development of Russia, Federal Statistics Service and Higher School of Economics (Anisimov et al, 2023) have established four broad categories of indicators to measure the development of digital economy and society. These indicators are expected to become a valuable tool of advancing the Russian Olympic movement. The authors have identified the leading countries in digital development within the BRICS+ association and pointed out the most significant benefits of cooperation within this alliance that should contribute to the development of Olympic education, marketing and information support.

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DOI: 10.3897/brics-econ.5.e129530

Authors: Wen Wang, Chen Long

Abstract: After the expansion of BRICS, its cooperation mechanism has officially transitioned to a new phase termed “Greater BRICS Cooperation”. This paper explores methods to enhance collaboration among the greater BRICS nations from the perspective of China. Employing textual and empirical analysis, this study observes that the developmental disparities between the global North and South have gradually diminished, amplifying the eagerness and capacity of developing nations to engage in global governance. Simultaneously, the original BRICS cooperation framework faces pressure to adapt alongside changes in its member composition. As a prominent BRICS member, China is urged to leverage its developmental expertise to drive standardized expansion protocols and foster internal and external cooperation. Internally, the association needs to standardize expansion procedures, enhance the institutional framework, and boost professionalism. Externally, it should establish a BRICS regional cooperation committee and strengthen ties with international organizations. These efforts aim to propel high-quality development and comprehensive advancement within the BRICS cooperation mechanism.

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DOI: 10.3897/brics-econ.5.e139877

Authors: Sushil Kumar, Afsah Shahid, Manmohan Agarwal

Abstract: Five members of the BRICS association had invited six other countries, Argentina, Ethiopia, Egypt, Iran, Saudi Arabia and the UAE to join the group from 1 January 2024; four of these accepted the invitation. The paper discusses the critical questions as to whether this expansion will enable the BRICS+ to become a greater contributor to the world GDP and trade, and if the intra-BRICS trade will be more significant than it is now. We expect the share of expanded BRICS in the global GDP to increase by 3%, reaching 28% and the share in the world trade to increase by 5%; the intra-BRICS trade should also rise by 5%. The intra-BRICS trade of the old members has grown considerably over the years. The share of exports by the new members is not large; it increases for some of them and decreases for others, with exports to the older members being much greater than those to the newer members.

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DOI: 10.3897/brics-econ.5.e129299

Authors: Ramakrishna Gollagari, PraveenaSri Perini

Abstract: This study examines the relationship between external debt and economic growth in the BRICS countries. It explores how BRICS integration can aid these economies and newly joined countries in solving the debt problem. Using the latest panel data techniques and country experiences, we employed the panel mean group method (PMG) and interrupted time series analysis (ITSA) for South Africa, who joined in 2010. Results show a negative relationship between external debt and economic growth at the group level, with mixed results for individual countries. Using individual country experiences, valid implications are drawn for debt-stressed countries like Ethiopia and oil-rich nations like Saudi Arabia. Integrating new member countries in BRICS can overhaul the existing system towards broader perspectives of reforms in global financial institutions. Integration into the BRICS association can benefit these countries through reforms in global financial institutions, fairer debt restructuring, joint investment projects, macroeconomic coordination, debt management knowledge sharing, innovative financing, and collective advocacy for debt relief to enhance stability and resilience.

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DOI: 10.3897/brics-econ.5.e120855

Authors: Gabila Nubong, Lerato Ntuli

Abstract: Foreign Direct Investment (FDI) in Southern Africa has been one of the drivers of infrastructure development and economic growth especially in sectors such as mining, agriculture, energy, information, and communications technology (ICT). However, although important economic and institutional reforms have been undertaken by some SADC countries to encourage the inflow of FDI--particularly in low-income countries in the region, the flow of FDI to SADC member states remains low and concentrated in few countries and sectors and is still largely attracted to natural resources sectors. This paper examines the institutions and infrastructure development in the promotion of FDI inflows into the SADC region. Institutions and infrastructure development typically have a positive effect on FDI inflows through their impact on the investment climate. The paper uses panel data econometric analysis with OLS and PCSE to ascertain the impact of governance institutions on FDI inflows into the region. The results obtained reveal that the quality of governance, together with the level of economic development, market size, and openness to trade with the external world play a critical role in attracting FDI into SADC countries. There is however a need to control rampant corruption and reduce the political instability common in some of the countries of the region.

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DOI: 10.3897/brics-econ.5.e127124

Authors: Jerit Dube

Abstract: Small and medium-sized enterprises (SMEs) in the informal sector of Brazil, Russia, India, China, and South Africa (BRICS) play a critical role in boosting their nations’ economies. Informal entrepreneurship is an important source of economic development thanks to knowledge sharing and innovation extensively employed in this area. The BRICS countries are viewed as leaders in economic development, innovation, and knowledge transfer among developing countries; abundant research into the factors of their success has so far paid insufficient attention to the relationship between innovation and knowledge generated by the SMEs and their role in promoting the BRICS countries’ development. This paper attempts to narrow the gap by critically analysing the nexus between innovation and knowledge sharing among informal small and medium-sized enterprises in these countries. It offers a systematic review of academic sources obtained from EBSCOhost followed by a thematic analysis of secondary data and a discussion of its results, which, as we hope, will provide insights for development practitioners and researchers in BRICS countries.

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DOI: 10.3897/brics-econ.5.e136477

Authors: Maria Sergeeva, Tatiana Razumova, Olga Zabelina

Abstract: The paper seeks to evaluate the state of development of platform employment in the BRICS countries under the influence of digital transformation of the economy and society and identify common challenges that the countries face in this area. The study of the national regulatory frameworks and statistical data from Brazil, Russia, India, China and South Africa allowed the authors to pinpoint the main trends in the platform employment development, identify its ‘bottlenecks’ caused by the lack of common understanding of the phenomenon, create socio-demographic portrait of the platform worker and address the issues pertaining to collective representation of the workers’ interests with a focus on social partnership. The research has taken into account specific traits of the BRICS countries and so its findings and proposals can be used for flexible regulation of their platforms aiming to achieve a balance of interests of the government, business and workers.

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DOI: 10.3897/brics-econ.5.e129880

Authors: Anna Mishina, Denis Andreyuk, Wenbo Xu

Abstract: The paper seeks to explore the core life values of people living in Russia and China using an online survey in the respondents’ native languages with samples of 887 and 559 participants from each country respectively, who were asked to think of three words associated ‘with something most important in life’. The word-association arrays were translated into English by an automatic translator; then we compared the frequencies of individual words or those of their meanings obtained using the Roget’s Thesaurus. The words ‘family’ and ‘love’ were the most frequent in both samples, but the frequencies of these and most of the other words from the semantic core of each sample differed significantly. Analyses at the level of semantic vectors showed that more than half of the meanings that Russian respondents described as important and more than a third of the meanings important to the Chinese respondents had significant differences in frequencies between the samples. The paper presents 62 semantic groups of the Roget’s Thesaurus, the frequencies of which are reliably different; these are the meanings in which the Chinese and Russian samples differ with regard to life values. There are also 26 semantic groups, the frequencies of which are statistically the same and comparatively high in both samples: these are the common meanings. The results may be used in the design of automatic and AI systems to reduce the intercultural barriers.

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DOI: 10.3897/brics-econ.5.e133581

Authors: Nikolay Nenovsky, Gildas Bondi

Abstract: On 6 July 2024 in Niamey, the leaders of Mali, Burkina Faso and Niger signed the constitutive act of the Confederation of Sahel States, at the same time confirming the departure of these three countries from the Economic Community of West African States (ECOWAS). The new Confederation of the Sahel States has decided, among other things, to set up an investment bank and a stabilisation fund. It is therefore plausible that the confederation will soon adopt a common currency. This issue is of utmost importance for many countries so it is worthwhile to see how the proposed new currency will be guaranteed by the natural resources of the Alliance of Sahel States (AES). The aim of this article is to examine the theoretical foundations and practical aspects underlying the creation of a common currency based on natural resources within the AES.

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DOI: 10.3897/brics-econ.5.e129160

Authors: Vijimon Oorkolil

Abstract: “KosmosCoin: Redefining Global Finance through a New Reserve Currency Paradigm”. The concept of KosmosCoin as a global reserve currency presents a revolutionary approach to addressing the challenges and limitations of existing fiat currencies and cryptocurrencies. Unlike traditional currencies, KosmosCoin is backed by tangible assets such as land, population, and precious metals, providing inherent stability and value. This paper explores the unique selling points of KosmosCoin, including its potential to enhance economic stability, promote financial inclusion, and increase monetary sovereignty. By leveraging blockchain technology and decentralized governance models, KosmosCoin aims to create a transparent, efficient, and inclusive financial ecosystem. Key findings of this research indicate that KosmosCoin could significantly reduce transaction costs, improve liquidity, and facilitate global trade. However, practical implementation faces challenges related to scalability, security, privacy, and regulatory compliance. Despite these obstacles, the potential economic implications of KosmosCoin are profound, suggesting a promising avenue for reshaping the global financial landscape. This paper concludes that with collaborative efforts and strategic planning, KosmosCoin has the potential to become a viable and transformative global reserve currency.

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DOI: 10.3897/brics-econ.5.e127270

Authors: Farai Nyika, Izunna Anyikwa, Simbarashe Mhaka, David Mhlanga

Abstract: Purpose: The study explores the complex relationship between environmental degradation, healthcare expenditure and health outcomes in the Caucasus region and Russia between 2000 and 2020. Methodology: We employ ARDL (Autoregressive Distributed Lag) and Granger causality analyses to assess the impact of greenhouse gas emissions on healthcare expenditure and quality of life indicators in Armenia, Azerbaijan, Georgia, and Russia. Findings: Our results reveal a significant and lasting impact of carbon dioxide and methane emissions on healthcare expenditures, but we did not find a clear causal link between greenhouse gas emissions and quality of life indicators. This points to an intricate correlation between environmental factors and health systems. Implications: we emphasize the need for sustainable development strategies that effectively address both environmental and health challenges. Originality: This study fills a critical gap in the existing literature on the intersection of environmental economics and public health. It offers valuable insights for policymakers grappling with the dual challenges of environmental degradation and healthcare management.

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DOI: 10.3897/brics-econ.5.e126783

Authors: Lukmon Oderinde, Gbenga Sanusi, Ojo Adelakun, Matthew Agbawn

Abstract: There is a wide consensus about the role of economic policy in attaining macroeconomic goals of high employment, price stability, and rapid economic growth. It is not clear, however, to what extent the monetary instruments can contribute to the development of self-owned enterprises. Monetary policy is one of the major policy tools for promoting business and investment once it is geared towards reducing unemployment. This study aims to assess the effect of monetary policy on self-owned enterprises in a developing economy, such as Nigeria. Based on the modern monetary theory which offers an alternative way of reaching full employment and price stability, the authors employ Toda-Yamamato-Dolado-Lutkepohl causality test to carry out an empirical analysis of the quarterly data for the period between 1991 and 2022. The effects of changes in the broad money and lending rates are similar. A unit broad money-related shock leads to little or no change in self-employment and there is a quick convergence to equilibrium. The paper provides robust empirical evidence revealing the effects of the two key monetary policy variables on self-owned business in a developing economy. For policy purposes it is important to point out that monetary policy does not directly affect self-owned businesses in Nigeria. It is concluded that monetary policy will be more effective in promoting self-owned businesses if there are special funds and lending rates for the small-scale businesses.

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DOI: 10.3897/brics-econ.5.e126421

Authors: Yannis Katsoulacos, Zhixue Gao, Zili Wang, Lingbing Feng

Abstract: This article empirically measures indicators capturing the role of economics in the antitrust decisions of the Competition Authorities of China from 2010 – 2021. The methodology allows that identification of the legal standards (LSs) adopted in assessing different conduct types and their evolution. The LSs are compared to their theoretically optimal level in order to deduce quality of enforcement. Comparative analysis is undertaken with published results on the role of economics for EC’s DGCOMP, UK’s CMA and Russia’s FAS. The Chinese Authorities’ enforcement record lags behind in quality that of DGCOMP and CMA in abuse of dominance cases though it is already well ahead of countries in which their modern Competition Law enforcement started at about the same time (2008), like Russia.

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DOI: 10.3897/brics-econ.5.e121010

Authors: Sanela Porca-Konjikusic, Paul L. Hudson Jr., Lodha Jain Harshi

Abstract: This paper explores the realms of global economic integration by comparing the two prominent international organizations: the Association of Southeast Asian Nations (ASEAN) and Brazil, Russia, India, China, and the South Africa bloc (BRICS) and new entrants to BRICS Plus. The study examines the shared objectives, divergent approaches, and potential complementarity of these organizations. By analyzing their economic diversity, regional and global initiatives, and trade agreements, the research investigates the question of collaboration between BRICS and ASEAN organizations. This research finds a variety of economic disparities among members of both ASEAN and BRICS, a variety of investment patterns, economic policies, population and labor force dynamics, net portfolio investments, and capital flows. The paper provides a nuanced holistic analysis of ASEAN and BRICS. This article offers a unique, holistic analysis, comparing and contrasting ASEAN and BRICS countries and the nature of these two organizations. This paper includes policy recommendations related to fostering collaboration between nations in various aspects of their economies, and areas in which countries may strengthen financial ties. Knowledge of BRICS, BRICS Plus, and ASEAN gained through reading this article may enable them to decide on strategies to avoid trade barriers and may also enable them to identify countries with growth areas in various economic sectors.

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DOI: 10.3897/brics-econ.5.e120897

Authors: Kumar Akhilesh

Abstract: Science, technology, and Innovation (STI) have been the cornerstone of China’s Reform and Opening-up processes. Employing a hybrid methodology, including textual analysis, this paper asserts that four decades of reform and opening-up have witnessed STI’s pivotal role across sectors despite numerous challengesб such as economic slowdown, growing disparities, environmental issues, and a huge burden on the state-owned enterprises. China’s substantial investments in the Fourth Industrial Revolution technologies, including Artificial Intelligence and New Energy Vehicles, exemplify its commitment to innovation, reflected in over 2.5% of GDP allocated for research and development in 2022. This robust investment has bolstered China’s innovative capabilities and brought about its high ranking on the Global Innovation Index. In Chinese STI politics and policy-making, the programs like MLP-2006, SEI-2010 and Made in China 2025 have created a watershed moment. Three central research questions guide our exploration: the trajectory of policy framing on STI-Driven development, the theoretical underpinnings of Innovation-Driven Development and Green Development in Chinese STI politics, and the significance of these paradigms in China’s context. This paper also hypothesizes the emergence of two distinct trajectories within China’s STI politics through the adoption of Innovation-Driven Development and Green Development, positioning STI at the core of China’s development paradigm. The study thoroughly dissects China’s official discourse, framing these paradigms within the Sustainable Development context and highlighting their crucial roles in China’s journey toward technological advancement and sustainability. The analysis of the evolution of China’s STI policy as portrayed in official discourse offers insights into the strategic role played by science, technology, and Innovation in moulding China’s socio-economic trajectory alongside global implications stemming from its transformative development agenda.

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DOI: 10.3897/brics-econ.5.e122586

Authors: Kago Matlhaku

Abstract: This study examines the effects of financial development on the stock market comovement of Brazil, Russia, India, China and South Africa (BRICS) on the one hand and the US Dow Jones on the other. Its main goal is to find out if trust has a mediating effect on financial development using data from the World Bank and the World Value Survey (WVS). Panel data analysis along with ARDL methods helped the authors obtain robust results. It was found that financial development plays a significant role in determining stock market comovement among the countries in question and that trust also has a moderating impact. The analysis was extended to the institutional and market factors of financial development. The paper introduces trust as a mediating variable that positively affects financial development, which in turn promotes stock market integration and comovement. Its results imply that investors should consider financial development and trust levels of a country when considering portfolio allocation for global diversification purposes, especially in emerging markets. Countries with insufficient trust levels, like Brazil, could benefit from improving their trust score through enhancing financial development and stability.

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DOI: 10.3897/brics-econ.5.e121429

Authors: Sharofiddin Ashurov, Osman Sayid Hassan Musse, Taalbi Abdelhak

Abstract: This study delves into the conceptualization of Corporate Social Responsibility (CSR) as a crucial factor for fostering sustainable development and enhancing social welfare. It addresses the challenge of comprehensively perceiving the contributions of CSR activities to sustainable and socially responsible corporate practices. Using a bibliometric approach, this research scrutinizes a substantial corpus of literature, extracting 4,276 documents covering from 2009 to 2024 from the Scopus database, centered on the interplay between CSR, sustainable development, and social welfare. The research utilized the R Biblioshiny software for data analysis incorporates descriptive, annual scientific production, most relevant sources, core sources by Bradford’s Law, most relevant affiliations, corresponding author’s countries, network, and trend analyses to chart the progression and influence of CSR within these realms. Findings underscore a marked expansion in CSR-related research, spotlighting its evolution from mere charity to an integral component of strategic business operations. Emerging patterns reveal that businesses increasingly view CSR as a pivotal part of their value proposition rather than an optional extra. Despite the growth of academic interest, the study has identified a lacuna in the empirical understanding of how CSR strategies are effectively implemented. Recommendations call for a more seamless incorporation of CSR into the very fabric of corporate strategy and operations. Furthermore, the study highlights the need for future research to develop precise metrics capable of quantifying CSR’s social and environmental effects. Contributing a nuanced perspective to the discourse on CSR, this research provides a foundational schema for further scholarly investigation, underscoring CSR’s dynamic and essential role in today’s corporate world.

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DOI: 10.3897/brics-econ.5.e119680

Authors: Sarvar Giyasov

Abstract: Uzbekistan’s cooperation with the BRICS countries is very important owing, first, to the growing economic power of the group members and, second, to its role in the qualitative transformation of the global South development scenarios. It should involve joint efforts based on contacts with regional partners, rather than competition, in order to strengthen balanced and inclusive economic growth, improve international competitiveness of the BRICS economies and achieve development levels comparable with those of advanced Western economies. The present paper uses statistical data on foreign economic relations of Uzbekistan and is based on content and comparative analysis of the main indicators related to exports and imports of the goods and services necessary for economic development of the partner countries. Presenting the results of Uzbekistan’s interaction with the BRICS countries, it identifies the main difficulties these countries are faced with, suggests ways of resolving them and outlines possible strategies for cooperation between Uzbekistan and the BRICS countries. This cooperation will help increase trade turnover, which will benefit all the parties involved. At the same time, it may cause serious problems in regional transport, logistics and financing. The paper also considers the BRICS countries’ links with other Central Asian countries.

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DOI: 10.3897/brics-econ.5.e119490

Authors: Sofya Karlovskaya, Alexander Chelombitko

Abstract: The paper examines the prospects and peculiarities of the development of cross-border e-commerce between Russia and China. The degree of e-commerce impact on trade turnover between Russia and China is assessed using an econometric model based on the analysis of trade flows between BRICS countries in the period from 2000 to 2022. The results obtained indicate that with an increase of 1% in the number of Internet users in Russia and its trading partners from the BRICS countries, the trade turnover increases by 0.19%. The paper also identifies the key challenges faced by entrepreneurs engaged in cross-border e-commerce between Russia and China and offers guidelines for these countries’ cooperation in the field of e-commerce. Based on the analysis of the relevant data the paper concludes that integration of digital technologies and increased access to the Internet contribute to the strengthening of trade ties between Russia and the BRICS countries, thus opening up new prospects for the development of cross-border e-commerce.

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DOI: 10.3897/brics-econ.5.e117358

Authors: Charles Saba, Marinda Pretorius

Abstract: The BRICS countries (Brazil, Russia, India, China, and South Africa) aim to achieve Sustainable Development Goals 3 and 16, which involve promoting human well-being for all and building strong institutions and governance. This study examines the AII-HWBG nexus contingent on governance indicators within the BRICS nations in 2012-2022 using the Cross-Sectional Augmented Autoregressive Distributed Lag (CS-ARDL) technique. Its findings reveal a long-term relationship among variables with varied causality directions and point to the necessity of integrating governance quality into AII to boost HWBG in both the short- and long-term perspective. Since AII has not so far been used to support HWBG there is a dire need for caution when considering AII’s interaction with institutional governance, economic governance, control of corruption, political stability, regulatory quality and voice and accountability. The paper highlights the crucial role of governance quality in shaping the way AI investment impacts the human well-being. To ensure an overall improvement of well-being, priority should be given to strategies that promote positive synergy between AI investment and governance while mitigating possible harmful effects. Carefully targeted measures in governance areas can create an environment conducive to AI development where it will significantly benefit the citizens of the BRICS countries.

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DOI: 10.3897/brics-econ.5.e117948

Authors: Mduduzi Biyase, Frederich Kirsten, Talent Zwane, Santos Bila

Abstract: In light of environmental challenges, the BRICS countries have stepped to the forefront of economic progress versus environmental sustainability debate. Not only has energy consumption increased rapidly in these countries, but the economic progress and urbanization, mainly driven by intensive fossil fuel production, have also led to higher levels of income inequality. The dynamics of the interplay between economic growth, urbanization, and income inequality on the one hand and environmental sustainability on the other have yet to be fully understood in the BRICS context. This paper aims to contribute to the ongoing debate by assessing a combination of three Environmental Kuznets Curves (EKC) based on the GDPpc-emissions nexus, the income inequality- emissions nexus, and the urbanization-emissions nexus. Using the Autoregressive Distributed Lag (ADRL) and Panel Fully Modified Least Squares (FMOLS) models, we find an inverted U-shape EKC between GDP and carbon emissions, an inverted U-shaped EKC between income inequality and carbon emissions, and a U-shaped EKC between urbanization and carbon emissions. The inverted EKC between GDPpc and carbon emissions suggests that in the long run sustainable carbon reduction is possible alongside economic growth, but urbanization’s U-shaped impact on emissions might hinder this. Moreover, the inverted U-shaped relationship between income inequality and carbon emissions indicates a potential long-run trade-off between reducing both inequality and carbon emissions. Factors behind this relationship may vary significantly and include institutions- and country-specific factors, yet policymakers in the BRICS countries will do well attempting to better understand the dynamics behind urbanization and inequality as it will enable them to adopt more effective holistic policies aiming to improve energy efficiency, reduce fossil fuel dependence, and build economic systems contributing to faster economic growth, lower inequality and greater environmental sustainability.

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DOI: 10.3897/brics-econ.5.e121212

Authors: Ilya Gurov

Abstract: The study aims to identify the impact of digitalization on predictability in the BRICS countries’ stock markets. It is based on an analysis of the dynamics of stock markets volatility during the 1990-2023 period. The paper seeks to prove that the standard deviation of stock returns is determined by the volume of incoming new information, and higher volatility of returns indicates lower predictability. Digitalization may cause a reduction in uncertainty as it uses more data, improves their quality and develops data analysis methods. On the other hand, digitalization may lead to increased uncertainty due to the emergence and development of new industries, in which it is more difficult to predict cash flows in comparison with traditional industries because of increased complexity of supply chains and technologies. Based on quantitative analysis, it has been revealed that digitalization has led to a statistically significant decrease in the volatility of stock markets in the BRICS countries. In 2015-2023, relative to the period of the 1990s-2006, volatility in Russia decreased by 1 percentage point, in India by 0.4–0.5 percentage points, in China by 0.8 percentage points, in the UAE (Dubai) by 0.5-0.7 percentage points. Statistically insignificant decreases in volatility were observed in Brazil and South Africa. In the developed capital markets, the decrease in volatility between these two periods was also statistically insignificant, amounting to less than 0.1 percentage points. These findings may indicate that the processes of digitalization in the BRICS countries contributed to an accelerated increase in predictability thanks to an increase in the volume and quality of information and the emergence of new methods of analysis. At the same time, part of the decrease in volatility may be explained by further development and improved efficiency of capital markets. The joint influence of these effects on the complexity of forecasting turned out to be more significant than the impact of innovative technologies and new industries.

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DOI: 10.3897/brics-econ.5.e117048

Authors: Alisa Kazelko, Uirá Sorbo Semeghini

Abstract: Brazil, Russia, India, China, and South Africa have invited six other countries to join the BRICS grouping next year, namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and United Arab Emirates. The expanded BRICS is the lynchpin of the changing world order and economic clout for the promotion of the Global South agenda. As evidence suggests, the new group is likely to exert profound influence over the world energy investment and trade: apart from impressive oil and gas deposits, an expanded BRICS could have 72 percent of rare earths (and three of the five countries with the largest reserves). This paper seeks to assess the energy market potential of each country invited to join the group and estimate the possible impact of these markets on mineral trade flows, investments, and energy trade deals within the BRICS association. To address the implications for global energy markets carried by this expansion, the paper examines each new member of the BRICS grouping’s mineral supplies and renewable energy capabilities. The authors conduct qualitative data analysis based on numerical evidence collected from the energy sector reports of each country, the latest report of the Center for Strategic and International Studies, and from publications by prominent experts of the countries invited to join BRICS. By revealing the current tendencies in BRICS oil and gas markets and the energy features peculiar to each of the new members, the paper answers the research question concerning the mineral resources that each new member of the bloc could offer in order to boost the BRICS energy markets. Touching upon the clean energy transition processes in the new member countries, the authors conclude by contemplating on the impact of the new BRICS on global energy trade in general.

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DOI: 10.3897/brics-econ.5.e121606

Authors: Akim M. Rahman, Lavina Maureen Zaman

Abstract: In today’s business-driven world, e-banking service is an important product in financial sectors of many countries and Pakistan is no exception. Many affect the delivery of these services, often unpredictable, factors and are fraught with serious pitfalls including those of psychological nature. The Voluntary Insurance scheme can help the country overcome existing difficulties and move closer to a cashless society, contributing to the growth of the banking sector and safety of the e-banking operations in Pakistan. The new e-banking legal products are expected to gratify consumers, make the banks stronger, and contribute to the overall social development; the proposed Voluntary Insurance is to guarantee their success. The Welfare Analyses have been used for setting the VI prices so that the customers’ efficiency-cost balance could become appealing. Once the policymakers and policy practitioners of Pakistan recognize the importance of the proposed VI product and make the necessary arrangements for its use in the e-banking services market, it may spread from bankers to their customers and thus over the whole economy. The process of life cycle of the VI product will follow the “S-curve” in progression. These developments will become drivers of economic growth and e-services will eventually replace traditional banking.

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DOI: 10.3897/brics-econ.5.e117828

Authors: Mohammed Saaida

Abstract: This article examines the de-dollarization phenomenon of the BRICS Plus and its impact on global economic dynamics. The research employs analytical descriptive technique to explore the factors that influence the BRICS Plus-led de-dollarization and the results it may lead to. The study discusses the BRICS Plus strategy, considering economic and political factors, and identifies potential areas of divergent interests within the changing global landscape. The BRICS Plus’s emergence involves an interplay between economic capabilities and geopolitical influence, potentially impacting existing global power dynamics. To achieve its goals, the BRICS Plus needs to address internal differences, establish institutions, and navigate complex geopolitical situations with diplomacy. The United States faces challenges, including its diminishing economic influence, which necessitates strategic choices and diplomatic measures for adaptation. The paper proposes recommendations based on creating internal strategies to meet the BRICS Plus’s economic needs and external strategies to be designed in response to proactive economic challenges of the United States in the international context.

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DOI: 10.3897/brics-econ.5.e120071

Authors: Yaroslav Lissovolik

Abstract: Starting from January 1, 2024 the ranks of the BRICS grouping expanded to include new regional powers from the Global South. The paper aims to explore the implications of the new composition of the BRICS grouping for the vectors of its economic cooperation. The conclusion reached in the paper is that the widening of the ranks of the BRICS raises the importance of coordinating policies in the economic sphere, macroeconomic policy specifically, with particular attention to reforming the BRICS Contingent Reserve Arrangement (BRICS CRA). To estimate the prospects of the BRICS development after the expansion is to assist the group’s financial institutions, including the New Development Bank and the BRICS CRA, in the creation of a diversified array of policy instruments aimed at providing support for economic development of the expanded BRICS association members.

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DOI: 10.3897/brics-econ.4.e112810

Authors: Elena Sharko, Dariya Bashkova

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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DOI: 10.3897/brics-econ.4.e112314

Authors: Sergey Nikonorov

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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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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DOI: 10.3897/brics-econ.4.e114685

Authors: Krish Chetty

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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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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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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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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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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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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DOI: 10.3897/brics-econ.4.e102638

Authors: Andrey Gnidchenko

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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DOI: 10.3897/brics-econ.4.e103662

Authors: Badar Alam Iqbal

Abstract: Need to be written 

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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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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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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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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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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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