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EEO. 2020; 19(4): 4116-4120

Tracing Linkages Between Trade Liberalization and Economic Growth: A Study of BRICS Economies

Salman Azam Joiya, Nyla Sattar, Ghulam Ghouse, Aribah Aslam, Aniqa Ijaz.

The share of the BRICS countries in worldwide trade has almost doubled over past several years and this could be partially attributed to a shift in trade policies of that economies. The BRICS are now the members of World trade Organization (WTO) and they are required to bind their tariffs. So, this recent study is about to observe influence of tariff averages on economic growth in these BRICS economies. It investigates the possible relationships among economic growth and trade liberalization for BRICS countries; Brazil, Russia, China, India and South Africa. It covers time period over 1996 to 2019. The fixed effects regression technique has been used for this study. The empirical result suggests that trade liberalization is detrimental for economic growth. The restrictive policies of trade are favorable to surge economic growth.

Key words: BRICS countries, trade liberalization, average tariff, HCI, Fixed panel method.

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