Economic Convergence Beyond Formal Integration: The Case of Recent BRICS Expansion
Öz
As alternative poles, the large emerging economies formed BRICS which has created debates on global economic governance, development, and alternative forms of international cooperation. As there are no formal rules of entry to the blocs, the member economies exhibit a less homogenous structure especially in institutional structures or policy regimes. Thus, it is arguable that any similarity, in the form of convergence dynamics, reflects the alignment of income dynamics rather than the institutional ones. This paper assesses the convergence dynamics among the BRICS countries in the form of core versus the expanded members. We investigate the convergence dynamics by using β- and σ-convergence among the BRICS members using GDP per capita measured at purchasing power parity (PPP) in constant 2021 prices. Using PPP adjusted income measure allows us to capture the real economic capacity and welfare-related dimensions. The empirical results show the income convergence within BRICS core and expanded, indicating a reduction in income dispersion over time. This finding suggests that BRICS functions as an economically meaningful reference group rather than merely a geopolitical coalition. Overall, the paper contributes to the international economics literature by demonstrating that economic convergence can occur despite the lack of official rules in that manner.
Anahtar Kelimeler
BRICS, Income Convergence, Economic Integration, Institutional Heterogeneity, Plurilateral Cooperation
Destekleyen Kurum
no
Etik Beyan
Only secondary data is used, no ethical approval needed
Teşekkür
no
Kaynakça
- Acemoglu, D. (2009). Introduction to modern economic growth. Princeton University Press.
- Apergis, N., Christou, C., & Miller, S. (2012). Convergence patterns in emerging economies. Journal of International Money and Finance, 31(3), 575–589.
- Armijo, L. E. (2007). The BRICs countries as analytical category: Mirage or insight? Asian Perspective, 31(4), 7–42.
- Baldwin, R. (2016). The great convergence: Information technology and the new globalization. Harvard University Press.
- Barro, R. J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106(2), 407–443. https://doi.org/10.2307/2937943
- Barro, R. J., & Sala-i-Martin, X. (1992). Convergence. Journal of Political Economy, 100(2), 223–251. https://doi.org/10.1086/261816
- Beckmann, J., Belke, A., & Dreger, C. (2011). Exchange rate volatility and convergence. Journal of International Money and Finance, 30(8), 1615–1633.
- Bini Smaghi, L. (2014). A view on the international monetary system from the BRICS. International Finance, 17(3), 311–329. https://doi.org/10.1111/infi.12036
- Borsi, M., & Metiu, N. (2015). The evolution of economic convergence in the European Union. Empirical Economics, 48(2), 657–681.
- Cooper, A. F. (2017). The BRICS: A very short introduction. Oxford University Press.
