Analysing the Trade Direction and Commodity Composition of IBSA Nations

Abstract

International trade is widely recognized as a key driver of economic growth, prompting countries worldwide to engage in various trade agreements such as multilateral, regional, or bilateral trade. One such forum is IBSA, consisting of India, Brazil, and South Africa - all emerging economies that could potentially serve as catalysts for economic growth, especially in developing nations. It is essential to assess their trade direction and composition, which researchers have evaluated using basic statistical tools such as correlation, growth rate, and Revealed Comparative Advantage. The study revealed that Intra-IBSA exports are more integrated than Intra-IBSA imports. While these three countries are aligned with their respective production lines, India's commodities' comparative advantages are poor. Therefore, there is an urgent need to enhance the quality of Indian products.