THE IMPACT OF SAUDI ARABIA’S ACCESSION TO THE BRICS BLOC ON THE PERFORMANCE OF SAUDI EXPORTS
DOI:
https://doi.org/10.2478/eoik-2024-0032Keywords:
Balance of Payments, BRICS, Merchandise Trade, Regional Trade Agreement, ExportsAbstract
This study aims to analyze the expected impacts of Saudi Arabia’s
accession to the BRICS bloc, which is intergovernmental organiza-
tion comprising Brazil, Russia, India, China, and South Africa. By
analyzing the intra-trade flows of Saudi Arabia with the BRICS coun-
tries from the implementation of the bloc until 2023 and measuring
the impact of Saudi exports and imports with BRICS on the balance
of merchandise trade, and to discuss the extent of the impact of the
net intra-trade situation of Saudi Arabia with BRICS on the balance
of merchandise trade. The most prominent Saudi export sectors were
diagnosed, and their corresponding customs tariff averages in the
BRICS countries were analyzed to determine the expected effects of
implementing a regional trade agreement (RTA) between the BRICS
bloc. The study is based on the ARDL model and Saudi data from
(2003-2022), using three models by applying on exports, imports, and
trade balance of Saudi Arabia, the findings suggests that there is no
significant relationship between Saudi Arabia’s trade balance on the
one hand, and exports, imports and the trade balance with BRICS on
the other hand, which reduces the impact of Saudi Arabia’s acces-
sion to BRICS on Saudi exports. which requires further negotiation
of mutual obligations and potential gains between the member states
of BRICS.
References
Aksoy, H., Gegez, E. & Arslan, M. (2020). trade blocs and their implications for national economies.
Öneri Dergisi 2(8):29-34. DOI: https://doi.org/10.14783/maruoneri.682312
Flatters, F. & Kirk, R. (2003). Rules of Origin as Tools of Development? Some Lessons from SADC.
Paper presented at INRA conference on Rules of Origin, Paris, May 2003.
https://edc.gov.bz/wp-content/uploads/2016/11/rules-of-origin-as-tools-of-developments-
some-lessons-from-SADC.pdf
IMF (2022). “World Economic Outlook Database”. World Economic Outlook Database, October 2022”.
IMF.org. International Monetary Fund. October 2022. Retrieved 11 October 2022.
https://www.imf.org/en/Publications/WEO/weo-database/2022/October
Kaushal, L. A. (2022). Impact of regional trade agreements on export efficiency – A case study of India.
Cogent Economics & Finance (2022), 10: 2008090.
https://www.tandfonline.com/doi/full/10.1080/23322039.2021.2008090
Kpodar, K. & Imam, P. (2015). Does A Regional Trade Agreement Lessen or Worsen Growth Volatility?
An Empirical Investigation. fondation pour les études et recherches sur le développement inter-
national – Working Paper 137.
https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Does-A-Regional-Trade-
Agreement-Lessen-or-Exacerbate-Growth-Volatility-An-Empirical-43134
Krajišnik, M. & Žutić, A. (2017). Impact of the Enlargement of the European Union on the Foreign
Trade and Development of the New Members. Journal of economics De Gruyter. Vol. 5, No 1,
https://doi.org/10.1515/eoik-2017-0010
Lima, J. D., Aguiar, A. & Ronzheimer, I. N. (2021). “Economic and social effects of a possible trade agree-
ment between Latin America and the Asia-Pacific region”, International Trade series, No. 168 (LC/
TS.2021/199), Santiago, Economic Commission for Latin America and the Caribbean (ECLAC).
https://repositorio.cepal.org/server/api/core/bitstreams/0b29c64c-a6e1-44db-8ff2-
bb913ce85809/content
Masunda, S. & Mhonyera, G. (2024). Effects of free trade on export efficiency of COMESA member-states.
Journal of shipping and trade (2024) 9:5, https://doi.org/10.1186/s41072-024-00164-1
Mukwaya, R. (2019). The impact of regional integration on Africa’s manufacturing exports, Journal of
African Trade, ISSN 2214-8523, Atlantis Press, Paris, Vol. 6, Iss. 1/2, pp. 81-87.
https://doi.org/10.2991/jat.k.190708.001
Nguyen, D. B. (2019). A New Examination of the Impacts of Regional Trade Agreements on Interna-
tional Trade Patterns. Journal of Economic Integration, Vol. 34, No. 2 (June 2019), pp. 236-279.
https://www.e-jei.org/upload/JEI_34_2_236_279_2013600187.pdf
Raimondi, P. (2023). BRICS: The role of the unit of account for the new “basket of currencies””. India
Foundation. Archived from the original on 4 October 2023.
https://indiafoundation.in/articles-and-commentaries/brics-the-role-of-the-unit-of-account-for-
the-new-basket-of-currencies/
Söderbaum, F. & Shaw, T. M. (2003). Theories of New Regionalism. Palgrave, ISBN: 9781403901972.
https://doi.org/10.1057/9781403938794
Sedrakyan, G. S. (2023). The Impact of RTAs on Trade in Indonesia. Bagwell Center for the Study of
Markets and Economic Opportunity, Michael J. Coles College of Business, Kennesaw State
University https://www.kennesaw.edu/coles/centers/markets-economic-opportunity/docs/
fta-indonesia-sedrakyan.pdf
Stuenkel, O. (2020). The BRICS and the Future of Global Order (2 ed.). Lexington Books. p. 1. ISBN 978-
https://rowman.com/ISBN/9781498567299/The-BRICS-and-the-Future-of-Global-Order-
Second-Edition
WTO (2021). Trade Policy Review Body: The Kingdom of Saudi Arabia. World Trade Organization
WT/TPR/S/407. https://www.wto.org/english/tratop_e/tpr_e/tp507_e.htm
Yang, X. & Zheng, T. (2022). The Impact of Trade Agreements on Exports in the Context of Big Data
– Japanese Digital Products as an Example. the 2022 International Conference on Computer
Science, Information Engineering and Digital Economy (CSIEDE 2022).
https://doi.org/10.2991/978-94-6463-108-1_46
Yuzhu, W. (2020). New Regionalism Reshaping the Future of Globalization. China Quarterly of Inter-
national Strategic Studies, Vol. 6, No. 2, 249–265. https://doi.org/10.1142/S2377740020500116
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
