Argentina’s trade potential with BRICS: the gravity model approach
DOI:
https://doi.org/10.5281/zenodo.11396726Keywords:
gravity model, trade potential, BRICS, panel dataAbstract
The study investigates the trade potentiality of Argentina with BRICS countries applying the gravity model approach. The estimation is performed on a panel data set containing information on BRICS countries through the years 2009 to 2022. Empirical findings expose that Argentina’s total bilateral trade with BRICS countries is positively influenced by GDP, population, openness index and FDI. On the other hand, distance and real bilateral exchange rate show a negative influence on Argentina’s total bilateral trade flow with BRICS. Besides, the effect of Covid-19 is also analysed showing a negative and significant relationship. Based on these findings, the empirical analysis show that overall exist a trade potential between Argentina and BRICS countries. This research recommends that the Argentinian government for enhancing trade and production within the BRICS countries. Especially with South Africa, China, and Brazil due to their higher trade potential.
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Copyright (c) 2024 Karen Giselle Gomez, Lazyan Hasmik , Hussein HusseinI Amer Ma’en
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