DOI: 10.3897/brics-econ.7.e186730

Authors: Muhammad Sarmad Malik, Imran Ali, Vardah Iqbal, Qurat Ul Ain

Abstract: This study provides an empirical analysis of the relationship between trade and the environment in Singapore. It offers valuable insights into reconciling economic growth and environmental sustainability in this globally significant trade center and contributes significantly to policy formulation for trade-oriented economies. The paper examines empirical trends in trade openness, foreign direct investment (FDI), economic growth, sectoral contributions (agriculture, industry and services), and renewable energy and CO₂ emissions in Singapore from 1991 to 2024. To consider both linear and non-linear dynamics, a multi-model approach is used which includes fully modified ordinary least squares (FMOLS), canonical co-integrating regression (CCR), autoregressive distributed lag (ARDL) and non-linear (NARDL). The findings show that there is a positive link between total trade, foreign direct investment (FDI) and CO₂ emissions. Meanwhile, trade in commodities, renewable energy and the services sector are linked to negative effects, with industry showing the greatest positive impact on emissions. These asymmetric effects suggest different responses to economic shocks, with policy implications focusing on the expanded application of renewable energy, greater regulation of energy-intensive industries and the strategic use of Singapore’s institutional strengths to promote sustainable trade practices. It is concluded that narrowing the gap between urbanization and trade structure is a strategic approach to achieving economic prosperity and meeting the goal of global sustainable development.

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DOI: 10.3897/brics-econ.7.e151185

Authors: Rakesh Shahani, Kartikay Ahluwalia

Abstract: This paper examines whether India’s growth–environment trade-off is sustainable. It has two specific objectives. The first is to investigate the long-run co-integrating relationship between the ecological footprint (a proxy variable for the environment) and GDP per capita (a proxy variable for economic growth), with urbanisation, trade and biocapacity as additional variables. The second objective is to examine the applicability of the ‘N’-shaped Environmental Kuznets Curve (EKC) hypothesis in the Indian context. To accomplish these objectives, the study considers the period from 1971 to 2017 (46 years) and sources its data from the World Development Indicators and the Global Footprint Network. The methodology employed to analyse the relationship between the variables is ARDL cointegration and Toda-Yamamoto causality, while two variants of GDP (square and cubic) are used to validate the ‘N’-shaped EKC in the Indian context. The results revealed a strong long-term relationship (cointegration) between the variables. It was observed that all the variables except trade impacted the ecological footprint, with causality flowing from all the variables towards the footprint. However, an ‘N’-shaped EKC was not proven for India. These results have important implications. The long-run lagged error adjustment coefficient (ECM(-1)) revealed a slow adjustment process towards achieving sustainable development targets, which indicates that India’s environmental compromise in pursuit of economic growth still persists. While the nationwide initiatives, such as the National Solar Mission and the FAME schemes, are praiseworthy, the study recommends much more stringent policy measures for India. Stricter policies may require moderating some of the country’s growth targets in order to achieve transition towards an environmentally sustainable development path well aligned with the Sustainable Development Goals (SDGs) and COP26 commitments.

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DOI: 10.3897/brics-econ.7.e162074

Authors: Jude Msonter Awuna, Marina Yu. Malkina, Moses Adejo Adejo

Abstract: This study examines the relationship between government investment in human capital and economic growth in Nigeria between 1981 and 2023, as mediated by institutional quality. Specifically, the study uses the Dynamic Autoregressive Distributed Lag (D-ARDL) approach to evaluate the roles of public expenditure on education and health, governance quality, and gross capital formation. The augmented Dickey-Fuller test confirmed stationarity of the time series at first difference. The Bai-Perron and Chow tests identified structural breaks and the ARDL bounds test established a long-run relationship between the variables. The results reveal a stable long-term equilibrium between investment in human development and economic growth. Health expenditure has a positive and significant long-term effect on GDP, which supports the hypothesis of health-led growth. Education expenditure has a positive effect over time, indicating that the benefits of education spending are realized gradually. However, the interaction terms reveal that the effectiveness of health and education spending hinges critically on institutional quality. Poor governance can undermine or even reverse the growth-enhancing effects of public spending. Institutional quality itself is found to significantly influence growth dynamics. The findings suggest that human development is not only an outcome of economic expansion, but also a driver of long-term growth in Nigeria’s economy. The study concluded that sustained growth required increased and efficient investment in the social sector, supported by strong institutions that promote accountability, transparency, and policy stability.

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DOI: 10.3897/brics-econ.7.e138473

Authors: Palesa Lefatsa, Gabila Nubong

Abstract: This study investigates the interconnections between financial development, economic growth, and energy consumption within the Southern African Development Community (SADC) region between 1980 and 2023. Using the Panel Autoregressive Distributed Lag (PARDL) model alongside Dumitrescu and Hurlin (2012) causality tests, the research provides new insights into the dynamics of these variables. The study reveals a significant positive correlation between financial development, economic growth, and energy consumption. The key finding is the negative relationship between energy consumption and urbanization, while no significant linkage is found between energy consumption and industrialization. The Granger causality test reveals a unidirectional causal link between financial development, urbanization, and energy consumption, and a bidirectional relationship between economic growth and energy consumption. These findings contribute to existing literature by offering a more nuanced understanding of the region’s energy consumption dynamics compared to previous studies that have often presented inconclusive or context-specific results. This study extends previous research by examining the unique economic and energy challenges faced by the SADC countries, providing fresh evidence for policymakers focused on integrating financial sector development with sustainable energy policies. The study suggests that investing in renewable energy and expanding electricity access, especially in rural areas, could enhance both urbanization and financial sector growth, fostering broader economic development. The diagnostic checks affirm the robustness and reliability of the model, ensuring the validity of the findings.

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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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.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.e103662

Authors: Badar Alam Iqbal

Abstract: Need to be written 

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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.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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DOI: 10.3897/brics-econ.3.e96300

Authors: Bruno De Conti, Antônio Carlos Diegues

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

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DOI: 10.3897/brics-econ.3.e81072

Authors: Valdir da Silva Bezerra

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

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DOI: 10.3897/brics-econ.3.e83129

Authors: Ololade Mistura Aromasodun

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

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