Theoretical and Applied Economics
No. 4 / 2020 (625), Winter
Static and dynamic analysis of intra-industry trade of BRICS countries
Visva-Bharati (A Central University), Santiniketan, West-Bengal, India
Abstract. 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 selected at one- digit and two-digit SITC Industry level for GL IIT index, Further, to conduct MIIT analysis, industry is defined at two-digit-SITC level data by aggregating four-digit SITC sub-industry level data of IIT of BRICS countries. Further, study analysed the Pre and Post-BRICS trade pattern of IIT. Therefore, this study emphasises that do emerging economies IIT among themselves? On the basis of estimated results of this study revealed that IIT occurs at higher level of aggregation. This signifies that developing countries are trading in the same Industry for love for variety and cost effectiveness. Hence, the empirical result contradicts conventional Krugman (1979, 1985) hypothesis of IIT trade takes place in developed nations (industrialist nations). This implies that BRICS countries should focus on opportunities of trade complementary of intermediates products. This will enhance cost effectiveness of product development or production. Further, this will promote innovation in the BRICS region. To achieve this, countries needs to conduct constructive trade dialog among the BRICS countries.
Contents
The European Union in the face of the prospect of achieving major objectives in the conditions of the pandemic and economic-financial crisis
What determines the portfolio investment flows to Central and Eastern European Countries in the European Union 2001-2017?
Analysis of the correlation between taxation indicators and economic growth at the macroeconomic level in European Union and Romania
Measuring Adobe Company performance from the perspective of a Complex Adaptive System
Welfare enhancing uncertainty
Business process modeling. Using Unified Modeling Language to streamline the design of the TO-BE system within a company
Static and dynamic analysis of intra-industry trade of BRICS countries
Fossil fuel consumption, economic growth and CO2 emissions. Causality evinced from the BRICS world
Methods used in risk financing
Is there a relationship between economic welfare and innovation performance? Evidence from selected European countries
Analyzing Romania GDP: Final consumption, gross investment, and net exports influence compared to previously published models
Analysis of the natural movement of the population under the spectrum of the health crisis
On the relationship between economic growth and government debt for Bulgaria. Test of the Reinhart-Rogoff hypothesis
Testifying the role of regulatory environment in trade facilitation: Impact on intra-regional trade in South-Asia
India and trade blocs: A gravity model analysis
Predicting the volatility in stock return of emerging economy: An empirical approach
Portfolio optimization with VaR approach: A comparative analysis for Japan, London, New York and India
Income-dependent impacts of financial development and human capital on economic growth. A non-stationary panel analysis
Monetary policy and exchange rate pass-through in India
Impact of medium of instruction in education on economic growth and development
Institutions and economic growth: A comparative analysis of developing and developed countries based on institutionalized social technologies index
Exports, imports and economic growth in India: An empirical analysis
BEPS – A challenge for the increasing budget revenues in the process of digitalization
Implementation of public policies. The compatibility of the model of public policy with the target space of the policy
Fiscal sustainability in Romania