INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH
The gravity model approach was used to examine intra-trade flows and exchange rate volatility among BRICS countries. The study discovered that GDP has a significant impact on intra-trade flows, whereas geographical distance and exchange rate volatility have a negative impact on intra-BRICS trade flo...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
iVolga Press
2023-10-01
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| Series: | Russian Journal of Agricultural and Socio-Economic Sciences |
| Subjects: | |
| Online Access: | http://rjoas.com/issue-2023-10/article_01.pdf |
| _version_ | 1827392524697731072 |
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| author | Damiyano D. Matindike S. Mago S. Dorasamy N. |
| author_facet | Damiyano D. Matindike S. Mago S. Dorasamy N. |
| author_sort | Damiyano D. |
| collection | DOAJ |
| description | The gravity model approach was used to examine intra-trade flows and exchange rate volatility among BRICS countries. The study discovered that GDP has a significant impact on intra-trade flows, whereas geographical distance and exchange rate volatility have a negative impact on intra-BRICS trade flows. According to the results of the gravity model, special attention should be paid to improving the exchange rate stability of each BRICS country's real GDP. The study recommended that policymakers in the BRICS countries craft macroeconomic policies that reduce exchange rate volatility while maintaining the level and pattern of trade openness. The BRICS economies should generally strengthen and restructure their domestic foreign exchange markets, as their absence acts as a roadblock in mitigating exchange rate risk. |
| first_indexed | 2024-03-08T17:33:02Z |
| format | Article |
| id | doaj.art-c3d6d5d0d69244aaa653139f9b9307e8 |
| institution | Directory Open Access Journal |
| issn | 2226-1184 |
| language | English |
| last_indexed | 2024-03-08T17:33:02Z |
| publishDate | 2023-10-01 |
| publisher | iVolga Press |
| record_format | Article |
| series | Russian Journal of Agricultural and Socio-Economic Sciences |
| spelling | doaj.art-c3d6d5d0d69244aaa653139f9b9307e82024-01-02T14:06:49ZengiVolga PressRussian Journal of Agricultural and Socio-Economic Sciences2226-11842023-10-011421031210.18551/rjoas.2023-10.01INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACHDamiyano D.0Matindike S.1Mago S.2Dorasamy N.3Department of Development Studies, Faculty of Business and Economic Sciences, Nelson Mandela University & Faculty of Management Sciences, Durban University of TechnologyDepartment of Development Studies, Faculty of Business and Economic Sciences, Nelson Mandela UniversityDepartment of Development Studies, Faculty of Business and Economic Sciences, Nelson Mandela UniversityFaculty of Management Sciences, Durban University of TechnologyThe gravity model approach was used to examine intra-trade flows and exchange rate volatility among BRICS countries. The study discovered that GDP has a significant impact on intra-trade flows, whereas geographical distance and exchange rate volatility have a negative impact on intra-BRICS trade flows. According to the results of the gravity model, special attention should be paid to improving the exchange rate stability of each BRICS country's real GDP. The study recommended that policymakers in the BRICS countries craft macroeconomic policies that reduce exchange rate volatility while maintaining the level and pattern of trade openness. The BRICS economies should generally strengthen and restructure their domestic foreign exchange markets, as their absence acts as a roadblock in mitigating exchange rate risk.http://rjoas.com/issue-2023-10/article_01.pdfintra-tradeexchange ratevolatilitytrade opennessbrics |
| spellingShingle | Damiyano D. Matindike S. Mago S. Dorasamy N. INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH Russian Journal of Agricultural and Socio-Economic Sciences intra-trade exchange rate volatility trade openness brics |
| title | INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH |
| title_full | INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH |
| title_fullStr | INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH |
| title_full_unstemmed | INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH |
| title_short | INTRA-TRADE FLOWS AND EXCHANGE RATE VOLATILITY AMONG BRICS MEMBER COUNTRIES: A GRAVITY MODEL APPROACH |
| title_sort | intra trade flows and exchange rate volatility among brics member countries a gravity model approach |
| topic | intra-trade exchange rate volatility trade openness brics |
| url | http://rjoas.com/issue-2023-10/article_01.pdf |
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