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In this article, we tried to estimate Intra-Industry Trade among the BRICS countries. IIT calculated by employing Grubel and Lloyd IIT Index for static analysis and Thom and McDowell (1999) MIIT index for dynamic analysis. Additionally, the decomposition of IIT carried out to distinguish between Horizontal and Vertical IIT. The unit of analysis sel...
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... According to Lohani's most recent publications(2020a), trade creation occurs between India and the BRICS nations. According to a different study by Lohani (2020b), incremental IIT trade and intra-industry trade (IIT) happened at a higher level of aggregation. Furthermore, the data from the marginal IIT index demonstrated that IIT has increased over time in the BRICS countries. ...
This research paper examines how trade, income distribution, and convergence among the BRICS countries have been affected by the formation of the BRICS economies. Trade and convergence rate relationships have been examined using intra-trade organization, panel unit roots testing, and single difference techniques. An estimated convergence meter between the major trading partners of the BRICS countries and themselves has been calculated in the post-COVID-19 trade openness era.The investigation's conclusions demonstrated that the BRICS countries came closer together over the investigation's duration. However, no evidence of a connection to the formation of the postBRICS economic union appears to exist. The post-trade reform examination of the BRICS countries
produced different results with respect to trade and convergence. The panel unit roots test results also show that, with the exception of the Indian economy and import-based groups, conditional convergence are visible in the BRICS alliance and all export-based groups. Additionally, flawless convergence has been confirmed in every BRICS nation. The paper so suggests that the BRICS countries should participate in competitive trade and investment activities in the post-pandemic
globalization era.
... Nonetheless, new trade theory (e.g., Krugman, 1979) states that countries trade in a similar income level due to high IIT. Nevertheless, this notion was given for developed countries, which is contradicted by a recent study by Lohani (2020b) which states that developing countries also do IIT. ...
The present paper attempts to analyse trade and per capita income convergence for the BRICS countries. The effects of economic bloc formation on their trade and income distribution or convergence (divergence) among the countries have been analysed. To see the effect of trade on convergence rates, intra-trade group, single difference approach and panel unit roots tests have been used. The convergence measure is estimated between BRICS countries and with their major trading partners from post-trade liberalization period of BRICS countries. The study revealed that BRICS countries converging over the period. However, the evidence on post-BRICS economic bloc formation shows the insignificant relationship. The post-trade liberalization of BRICS countries analysis results varies among the BRICS countries. Further, panel unit roots tests results confirm that conditional convergence is taking place within BRICS bloc, export-based groups except for Indian case and import-based groups. Besides, absolute convergence has been confirmed for all the groups. Thus, the study suggests to BRICS countries need to actively engage in trade and investment activities.
