BRICS Journal of Economics

Competition factors and market analysis in the Russian universal marketplace sector Vladislav Vertogradov This paper explores the development of competition in the Russian marketplace sector from 2016 to 2024. To assess market power and differences between major companies, the study uses Data Insight ratings, which include online sales volume, number of orders, and average order value. These indicators enabled the construction of a strength–variety (SV) matrix that integrates the Herfindhal–Hirschmann Index and the Linde Index. Drawing on Russian and international literature, this paper identifies four groups of factors underlying marketplace competitive advantages: pricing strategy, logistics, marketing and technological innovation. It then compares major market players, namely Wildberries, Ozon, Megamarket, AliExpress Russia, Yandex Market and Magnit Market, with respect to each of these factors. In the medium term, the combination of advanced technological solutions and flexible delivery services is expected to be the primary competitive axis, which suggests further research into the impact of digital transformation on market-share dynamics. Read the full article on our journal's website https://brics-econ.arphahub.com/article/162186/ The publications in our journal is free of charge for the readers thanks to the support of VTB.

The China-Russia-BRICS factor in South African-US bilateral relations Muzi Shoba The bilateral relations between South Africa and the United States are at a crossroads. Since the apartheid era, these countries have gone through different stages of cooperation and periods of tension. Today, although they consider each other strategic partners, the two countries are facing increased diplomatic disagreements. These disagreements arise from South Africa’s growing diplomatic alignment with China, Russia and Iran, which oppose US international policies, and its active involvement in the BRICS association. This paper argues that South Africa’s cooperation with China, Russia, and other BRICS countries strongly affects the US’s perception of the country and determines its policy towards South Africa. The paper maintains that the South Africa’s case against Israel before the International Court of Justice and the passage of the Expropriation Act have strained its relations with the United States. This led to concerns regarding the future of bilateral trade agreements, such as the African Growth and Opportunity Act (AGOA). The paper is framed around constructivist theory and uses a qualitative methodology based on secondary sources. It concludes that the China-Russia-BRICS factor is central to the current diplomatic tensions between South Africa and the United States, its strategic partner. Read the full article on our journal's website https://brics-econ.arphahub.com/article/156373/

The financial sectors of Ghana and Kazakhstan: Comparative analysis of artificial intelligence adoption and implications Tijani Forgor Alhassan, Gaukhar Kalkabayeva, Anar Kurmanalina The adoption and integration of artificial intelligence (AI) in Ghana’s and Kazakhstan’s financial sectors signifies a transformative change, driven by technological advancement and pursuit of greater efficiency, improved risk management and enhanced customer experience. The study provides a comparative analysis of AI adoption in developing countries, focusing on key areas such as banking, investment management, legal compliance and financial inclusion. AI adoption is gradually gaining attention in Ghana, where fintech start-ups and traditional banks are using AI for mobile banking, fraud detection, and credit scoring. However, challenges such as poor infrastructure, data security concerns and lack of a skilled workforce impede the widespread implementation of AI and its full realization. In contrast, Kazakhstan has made significant progress in adopting AI, driven by government initiatives, robust digital infrastructure, and growing fintech ecosystem. Financial institutions in Kazakhstan use AI for algorithmic trading, regulatory compliance and customer service automation, positioning the country as a regional leader in fintech innovation. Despite differences in the countries’ approaches to adopting AI, both economies face similar challenges, such as algorithmic bias, regulatory uncertainty and capacity-building needs. The present paper explains why tailored growth strategies are needed to address these issues. It highlights the importance of investment, public-private partnerships and legal frameworks in upskilling professionals and creating technological infrastructure. The two countries should develop roadmaps for AI-tailored growth policies in their financial sectors to ensure their effective adoption and implementation for financial development. Read the full article on our journal's website https://brics-econ.arphahub.com/article/151598/

Evaluating the Impact of Foreign Exchange Restrictions on Economic Performance: A Comparative Analysis of Select Developing and Emerging Economies Tryson Yangailo This study examines the impact of foreign exchange restrictions on economic stability and growth in developing countries with varying degrees of currency controls, including Zambia, Brazil, Chile, Colombia, Ghana, India, Indonesia, Nigeria, South Africa, and Tanzania. The research focuses on how these restrictions affect key macroeconomic indicators such as GDP growth, inflation, foreign direct investment (FDI) and the current account balance. Using the World Bank data from 1986 to 2022 and the Jamovi software, the study applies statistical methods to assess the impact of different levels of currency restrictions on economic outcomes. The results suggest that moderate restrictions generally contribute to a balance between economic stability and growth, while more severe restrictions may negatively affect FDI inflows and GDP growth, although they tend to stabilize inflation and the current account. This study highlights the complexity of exchange control policies and provides new insights into their effectiveness and trade-offs for policymakers. Read the full article on our journal's website https://brics-econ.arphahub.com/article/135199/

ESG Corporate Governance and policy application in BRICS Countries: A Systematic Literature Review Yanan Zhao, Elena Frolova ESG governance in emerging economies is facing a major challenge: the use of global standards is expanding rapidly, but institutional asymmetries, regulatory capacity constraints and ownership structures are limiting their effective implementation. Existing empirical research still focuses on developed markets, but firm-level data on ESG corporate governance for BRICS is still scarce, even though these countries play a crucial role in global sustainability transitions. Following the PRISMA framework, this study systematically reviews 45 peer-reviewed articles on ESG corporate governance in BRICS (2021–2025) indexed in Scopus and Web of Science. Using VOSviewer keyword co-occurrence analysis, we code evidence on governance mechanisms, theoretical frameworks, research designs, policy references, empirical outcomes and regional disparities. The findings show fragmented yet rising attention to the issue, with China and India relying on state-led frameworks and South Africa following code-based, market-oriented rules. Russia and Brazil display weaker visibility in English-language journals. Board composition, ownership concentration and executive incentives appear to be decisive, but enforcement is weakened by institutional gaps. Evidence clusters around the four themes: governance and performance, ESG and firm value, ESG and risk, gender and diversity. Theory application remains limited: stakeholder, agency and institutional theories are often cited but rarely operationalised. The study extends ESG governance research by incorporating cross-country institutional contexts into a comparative analysis. Practically, ESG governance requires a closer alignment between policy development and local capacity, stronger enforcement, and more diverse research approaches. Under the right conditions, the BRICS countries can contribute to shaping global ESG standards and advance sustainable development. Read the full article on our journal's website https://brics-econ.arphahub.com/article/171174/

BRICS international cooperation as the mechanism for ensuring Russia’s food sovereignty Lubov Levaeva, Julia Zvorykina, Andrei Kalmykov, Sadhan Ghosh The paper discusses several aspects of Russian food sovereignty within the BRICS association, including the effectiveness of franchising systems, the use of trademarks and private labels, and issues related to packaging processing. The Food Security Doctrine of the Russian Federation aims to increase the export potential of agricultural products by developing domestic production and establishing long-term partnerships with international partners. This is an important factor in ensuring food sovereignty. Retail chains are an effective platform for promoting products from national suppliers. The success of international retail chain activities confirms the effectiveness of franchising systems in expanding business into foreign markets. Franchising is one of the most effective business models for developing export potential of the Russian firms in international markets. This study examines various franchise systems integrated by Russian and foreign retail chains into their operational activities. Most retail chains offer business-format franchises that involve requirements for store size, style, and assortment. One of the elements of franchising is the use of the firms’ own trademarks. These trademarks play a significant role in promoting goods in foreign markets, particularly private label products because they allow vendors to take into account the unique traditions and consumer preferences of each country where their business operates. Private labels are also one of the most flexible tools for effective operational activities as they help to regulate the supply chain at every stage, thus reducing costs. The paper summarizes data on consumers in the BRICS countries and identifies the characteristics of populations that are important for firms’ operational activities, including the average age of residents, religious and cultural diversity. Analyzing the specific features of a territory to identify potential business opportunities allows the retail chain to create an assortment that satisfies the needs of consumers in a particular trading area. Today, trade in food products generates a large amount of waste packaging worldwide. As important participants in supply chains, retailers play a role in regulating the types of packaging and its processing possibilities. When planning future activities, a trading company evaluates market conditions to forecast operational success. The paper examines factors affecting future demand and conducts a regression analysis of consumption patterns in the BRICS countries. Read the full article on our journal's website https://brics-econ.arphahub.com/article/169938/

Quantile Evidence on Institutional Quality and Economic Growth in a Fragile State: The Case of Afghanistan Yang Jingjing, Shah Mir Mowahed, Mariam Reha In recent decades, the role of institutions has become a central topic of discussion among scholars and policy makers. This study used time-series data from Afghanistan between 1996 and 2024 to gain new insights into the impact of political instability (POI), corruption (COR) and government effectiveness (GEF) on economic growth. The results of Quantile-on-Quantile Regression and Wavelet Quantile regression reveal that POI, COR, and GEF have adverse and statistically significant effects on GDP growth across all quantiles and over long-term time periods. Event analysis through the interrupted time series technique shows that the key political events, including the Civil War (CW), the First Round of the Taliban Regime (FRTR), U.S.-NATO interventions (USN), the Second Round of Taliban Regime (SRTR), and Regime Changes (RCH), have had a negative impact on Afghanistan’s GDP growth. The immediate impact of the Soviet Union’s war is estimated to be positive. At the same time, Afghanistan’s GDP experienced negative growth during SUW, CW, FRTR, and RCH, while during USN and SRTR, the GDP growth was positive. Based on these findings, the paper discusses possible policy implications. Read the full article on our journal's website https://brics-econ.arphahub.com/article/170868/

Fragmentation of Global Science and the Role of BRICS: A Bibliometric Analysis of Scientific Publications on Semiconductors Lilia Valitova, Marina Sheresheva, Dmitry Oskin This paper examines the fragmentation of global science and the changing role of the BRICS countries in international research collaboration under geopolitical pressure. Using bibliometric analysis of more than 688,000 semiconductor-related publications indexed in the Web of Science Core Collection (1965–2025), the study traces how the imposition of sanctions since 2022 has transformed global co-authorship networks. The findings demonstrate a structural shift from a previously integrated international scientific system toward a constellation of regional clusters. China has consolidated its position as the central node of the global publication network, assuming integrative functions once held by the United States and the European Union. India has increased its connectivity, strengthening ties within BRICS and with the Global South. Russia’s role has markedly declined following the suspension of collaboration with Western institutions, accompanied by a drop in joint publications. At the same time, Saudi Arabia and Egypt have emerged as new peripheral hubs, reflecting a reallocation of scientific collaboration toward countries not affected by sanction regimes. Network-metric analysis (degree, betweenness, closeness, and eigenvector centrality) confirms the polarization of the international research system. Sanctions have weakened traditional nodes while fostering new centers of influence within BRICS and the Global South. The paper concludes that sanctions have accelerated the regionalization of global science, transforming the semiconductor research landscape from a unified global network into multiple interconnected regional systems, each with its own core and sphere of influence. Read the full article on our journal's website https://brics-econ.arphahub.com/article/176467/

The first issue of BJE in 2026 presents research on institutional dynamics, technological transformation, and the shifting geopolitical landscape in the BRICS countries and other emerging economies. The issue opens with an analysis of the fragmentation of global science under geopolitical pressure, highlighting the evolving roles of BRICS nations in international research collaboration. Several articles focus on macroeconomic stability and institutional challenges. They evaluate the effects of foreign exchange restrictions on economic outcomes in developing nations, examine the long-term impact of political instability on economic growth in Afghanistan, and systematically review the implementation of ESG corporate governance across the BRICS bloc. The issue also addresses market integration, digital innovation, and diplomacy. These contributions explore the competitive evolution of Russian e-commerce marketplaces, compare AI adoption in the financial sectors of Ghana and Kazakhstan, and analyze the diplomatic complexities of South Africa's bilateral relations with the United States. Additionally, the role of retail franchising in ensuring food sovereignty within BRICS is discussed. Together, the contributions provide concise insights into the strategic, technological, and policy shifts shaping the future development of BRICS and related economies. The publications in our journal is free of charge for the readers thanks to the support of VTB.

Assessing the impossible trinity principle in BRICS grouping Lumengo Bonga-Bonga This paper contributes to the literature on the policy trilemma by evaluating potential policy combinations for the original BRICS within the framework of the Impossible Trinity. It also introduces a novel modelling approach that defines a boundary for the linear combination of variables associated with the policy trilemma. The findings reveal that the trilemma emerges from the interplay of these three policy dimensions. Given the global influence of the BRICS countries, the results suggest that, if they maintain a fixed exchange rate system, they will likely have to sacrifice either free capital movement or independence from monetary policy. This loss of flexibility could be particularly detrimental, considering their significant international influence and their role as major recipients of capital flows for trade and financial transactions. Consequently, the optimal policy combination for BRICS is free capital flow, monetary independence, and a flexible exchange rate. Read the full article on our journal's website https://brics-econ.arphahub.com/article/146580/ The publications in our journal is free of charge for the readers thanks to the support of VTB.

Assessing BRICS Economic Homogeneity Using Fuzzy C-Means Clustering and Optimum Currency Area Criteria Ivan Nosov The current state of international economic relations has intensified discussions surrounding various scenarios for financial convergence among the BRICS countries, including the potential adoption of a common currency or alternative means of payment. This paper explores the application of the C-means fuzzy clustering method to assess whether the economies of six BRICS countries — Brazil, Russia, India, China, South Africa, and Indonesia — exhibit homogeneity with respect to the criteria for an optimum currency area. To achieve this objective, the C-means fuzzy clustering model is applied to a set of economic indicators calculated for each BRICS member state and for a control group of non-BRICS economies, measured relative to those of a designated reference country. Each of the BRICS countries sequentially assumes the role of the reference country. The analysis focuses on how both BRICS and control countries are distributed among the resulting clusters. The findings indicate that the BRICS economies do not demonstrate homogeneity based on optimum currency area criteria because the largest economy in the group — the People’s Republic of China — frequently does not cluster with the other BRICS members. These results provide insights for ongoing discussions about the feasibility of a common BRICS currency by broadening the analytical framework and aiding policymakers in assessing the potential benefits, costs, and implications of deeper monetary integration within the group. Read the full article on our journal's website https://brics-econ.arphahub.com/article/147499/

Debt-to-pay-debt syndrome in Uganda Patrick Nahabwe This study investigates debt-to-pay-debt syndrome in Uganda from 1980 to 2022 using a quantitative approach with ARIMA modelling to evaluate public debt sustainability. Balanced time series data from the World Bank is analysed with public debt (% of GDP) as the dependent variable, incorporating autoregressive (AR) and moving average (MA) components as independent variables. Parameter estimation is conducted using Maximum Likelihood Estimation (MLE), with diagnostic tests ensuring model robustness. Results show that the AR(1) coefficient (0.350489), is positive and statistically significant, meaning that 35% of the current year’s debt is used to service the previous year’s debt. This finding confirms the persistence of the debt-to-pay-debt cycle in Uganda. The estimated ARIMA (1, 1, 11) model is both covariance stationary and invertible, making it reliable for forecasting public debt trends over the next decade. Forecasts suggest that the debt-to-pay-debt pattern will continue unless corrective measures are taken. The study recommends implementing comprehensive debt management policies to reduce reliance on new borrowing. This includes enforcing stricter fiscal rules and promoting revenue diversification through emerging sectors such as digital economies, agricultural value addition, mineral resources, and oil and gas. Read the full article on our journal's website https://brics-econ.arphahub.com/article/144680/