Management Concepts in the Paradigm of Spiral Dynamics: a Comparative Analysis of BRICS Countries’ Practices
Svetlana Semyshkina, Aleksandra Rodina

Paradigm shifts in management, reflected in new management concepts, have become common in the modern world. According to some of these concepts, human relationships have taken over the fundamental role in the organization, the corporate structure is becoming more flexible and there is no longer room for tight control. This paper aims to analyze management paradigm shifts in terms of spiral dynamics. It follows from the literature that the generally accepted management concepts can be related to the levels of spiral dynamics. Evidence from the BRICS countries shows that, as the level of spiral dynamics increases, management concepts tend to become more people-oriented or humanistic. The paper contributes to the theory of management; its findings are also intended for practical use in managing change and issues related to organizational culture.

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https://brics-econ.arphahub.com/article/146809/

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The third issue of BJE in 2025 presents fresh perspectives on sustainability, finance, and development across BRICS and related regions. The collection examines how BRICS countries can unlock their environmental potential, explores the interconnections between green finance, financial development, and industrial growth, and investigates the complex links between natural resource rents, Chinese financing, and sustainable economic growth in sub-Saharan Africa. Further studies assess the impact of ESG indicators on the financial performance of Chinese firms, analyze the sectoral structure of foreign direct investment between Russia and China, and offer a multifaceted exploration of agricultural land use, energy access, economic growth, and demographic change as key dimensions of sustainable development.

How to capitalize on the environmental potential of the BRICS countries?
Sergey Bobylev, Dmitrii Rakintsev, Alina Zolotukhina

Over the past five years, the BRICS countries have actively worked to develop and implement joint measures to mitigate climate change and adapt to other environmental risks. However, achieving significant results in these areas is impossible without the use of modern economic tools to financially support environmental and climate initiatives. This study examines the challenges and opportunities associated with the development and implementation of economic policies that aim to maximize the environmental potential of the BRICS countries. The paper proposes solutions to create a unified methodology for assessing ecosystem services within the BRICS framework, reveals the potential for creating a joint market and development fund for the BRICS ecosystem services, and describes the most promising economic tools that can be used to attract investments and rationally implement environmental projects.

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https://brics-econ.arphahub.com/article/162066/

Green finance, financial development, and industrial growth: insights from the BRICS economies
Simon Epor, Joseph Olorunfemi Akande

Industrialization is as indispensable to the BRICS economies as they are to the global economy. Given the current focus on sustainable production and improvements in financial services, this study aims to analyze the impact of green finance and financial development on industrial growth, both individually and in interaction. Focusing on the five BRICS member states (Brazil, Russia, India, China and South Africa), the study covers the period from 2000 to 2023. Long-run estimates were obtained using panel FMOLS and DOLS estimators, and robustness checks were performed using the PCSE estimator and the Panel Dumitrescu and Hurlin (2012) causality test. The results of the long-run estimators suggest that the combined effect of green finance and financial development significantly benefits industrial growth in the BRICS countries. So far, green finance has overlooked their industrial sectors but its true flourishing is only possible if it is integrated into financial development policies. The research uses three long-run panel estimators — panel FMOLS, DOLS and PCSE — to confirm and validate its results. The validity of the PCSE estimator is assessed in terms of cross-sectional dependence. The results will inform the industrial, financial, and environmental policies of the BRICS countries.

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https://brics-econ.arphahub.com/article/149285/

Natural Resource Rents, Chinese Financing and Sustainable Economic Growth nexus in sub-Saharan Africa
Benjamin Bensam Sambiri, Noah Cheruiyot Mutai, Onyekachi Osisiogu

Sub-Saharan Africa (SSA) has abundant natural resources and attracts substantial investment, especially from China, but sustainable growth remains limited. This study examines the persistent disconnect between resource wealth, foreign financing, and long-term economic performance in the region. Using 20 years of panel data from 31 SSA countries, we estimate seven econometric models — including fixed effects, dynamic panels, and instrumental variables (IV) — to assess the long-run impact of natural resource rents, Chinese investment, trade flows and foreign direct investment (FDI) on GDP growth.
Exports are consistently associated with stronger economic growth. By contrast, Chinese investment does not show a robust effect across specifications. Natural resource rents have a weak or no correlation with growth, but become significant in the IV model, suggesting that their impact is mediated by institutional quality. Imports are negatively or insignificantly associated with growth until endogeneity is addressed, after which their effect turns positive indicating the importance of trade efficiency. FDI consistently correlates with lower growth, pointing to problems such as capital flight or extractive investment practices.
This study challenges the assumption that Chinese finance and resource abundance are driving development in SSA. The findings highlight the critical role of effective governance, transparent resource management, and coherent trade and investment policies. Policymakers need to align external finance and natural resource use with institutional reforms to promote sustainable growth.

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https://brics-econ.arphahub.com/article/145573/

The Impact of ESG Indicators on Corporate Financial Performance: Evidence from Chinese Companies
Yushi Zhang

As key actors in China’s transition to a green economy, companies are aligning their business strategies with environmental, social, and governance (ESG) goals. However, there is still a lack of empirical evidence on how ESG performance impacts financial outcomes in emerging markets. This study seeks to fill this gap by investigating the relationship between ESG indicators and corporate financial performance using a panel dataset of Chinese A-share companies, listed on Shanghai and Shenzhen exchanges, over the period from 2013 to 2022.
Employing a two-way fixed-effects panel regression model, the analysis confirms a significant positive association between ESG performance and financial outcomes at the firm level. Furthermore, heterogeneity analysis reveals that this positive impact is more pronounced among NSOEs than SOEs. This differential impact is attributed to NSOEs’ greater operational flexibility and responsiveness to market conditions in implementing ESG strategies.
The findings contribute to the growing body of literature on ESG, offering a large sample of context-specific evidence from China and highlighting ownership structure as a critical moderating factor. These results have practical implications for policymakers and investors seeking to promote sustainable economic growth through ESG-based practices in emerging markets.

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https://brics-econ.arphahub.com/article/153844/

Analysis of the sectoral structure of foreign direct investment between the Russian federation and the People’s Republic of China
Vsevolod Zhirikov

The study analyzes the transformation of the sectoral structure of foreign direct investment between Russia and China from 2014 to 2024 in the context of the «Turning to the East» policy and the changing dynamics of the global geopolitical situation. Using a comprehensive methodological approach, it carries out statistical analysis of the dynamic series of investment flows, structural analysis of the sectoral distribution of investment and qualitative analysis of institutional changes in investment cooperation. The empirical base consists of official statistical data, reports from expert analysis centres and materials provided by relevant government agencies in both countries. The results reveal the following dramatic shifts in the structure of Chinese FDI in the Russian economy: the shares of the extractive and agricultural sectors grew from $796.0 to $6215.3 million and from $2099.7 to $3256.4 million, respectively, while the share of manufacturing fell from 30% to 12.2%. A three-tier investment structure has emerged, dominated by the natural resources sector (over 40%). There has been a 54-fold increase in investment in high-tech sectors, although their share remains modest. The paper argues that the structural changes in investment cooperation were caused, first, by the Western sanctions against Russia after 2014, second, by China’s growing need for Russian energy resources and raw materials and, third, by the desire of Chinese investors to minimize risks by working with influential Russian elites. The cautious attitude of Chinese investors towards Russia’s high-tech sectors is explained by the risks of secondary sanctions, the technological gap between the countries and institutional barriers in Russia. Key obstacles include weak transport and logistics infrastructure in the Russian Far East, an opaque business climate, and the two countries’ diverging investment priorities. A new interaction model is emerging, prioritizing raw materials, agribusiness, and state-backed projects, while manufacturing is becoming less attractive.

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https://brics-econ.arphahub.com/article/145598/

A Multifaceted Analysis of Agricultural and Arable Land Use, Electricity Access, Economic Growth, and Demographic Trends Across Regions: Implications for Sustainable Development
Tryson Yangailo

This study examines the links between agricultural and arable land use, access to electricity, economic growth, and demographic trends in several global regions, including sub-Saharan Africa, South Asia, East Asia and the Pacific, Europe and Central Asia, Central Europe and the Baltic States, Latin America and the Caribbean, and the Middle East and North Africa. The study hypothesizes that access to electricity moderates the relationship between agricultural land use, economic growth, and demographic trends, with regional disparities driven by differences in initial conditions such as infrastructure development and population dynamics. Using data from 2000 to 2022 from the World Bank database and Jamovi software, the analysis employs descriptive statistics, correlation, regression, moderation analysis, and Analysis of Variance (ANOVA) to explore regional disparities and identify challenges and opportunities for sustainable development. The results reveal significant regional disparities in electricity access, with regions such as Eastern and Southern Africa (31.8%) and sub-Saharan Africa (36.9%) facing significant electrification challenges compared to the near-universal access in Europe and Central Asia. Agricultural land use is a key determinant of economic stability, with South Asia having the highest percentage of agricultural land (56.7%), a pattern consistent with its agrarian economy. In contrast, the Middle East and North Africa faces significant constraints due to limited arable land (4.75%) and environmental challenges. The study also finds that regions such as Central Europe and the Baltics and East Asia and the Pacific have advanced agricultural practices and higher rates of urbanization, with less reliance on agriculture for economic stability. In addition, population growth shows a strong negative correlation with access to electricity (r = -0.834, p < 0.001), reflecting the demographic transition in developed countries where improvements in infrastructure coincide with lower fertility rates. Moderation analysis shows that in regions with low electricity access, such as sub-Saharan Africa, rapid population growth negatively affects GDP growth, but this effect is moderated by improvements in electricity access. Based on these findings, the study offers targeted recommendations for improving infrastructure, promoting sustainable agriculture, investing in human capital, and advancing inclusive urbanization strategies. These findings provide actionable guidance for policymakers seeking to address infrastructure deficits, reduce socioeconomic disparities, and overcome environmental constraints to achieve sustainable global development.

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https://brics-econ.arphahub.com/article/146851/

The fourth issue of BJE in 2025 presents research on trade, finance, and macroeconomic policy challenges in the BRICS countries and other emerging economies. The issue opens with an analysis of pharmaceutical trade within the expanded BRICS10 group, highlighting structural asymmetries, limited intra-bloc integration, and the potential for strengthening South–South cooperation. Several articles focus on financial stability and macroeconomic sustainability. They examine the effects of financial sector reforms in Sub-Saharan Africa, the role of natural resources and inflation in economic stability, and Uganda’s persistent debt-to-pay-debt cycle, emphasizing the need for prudent fiscal and debt management. The issue also addresses international integration and policy coordination, exploring BRIC participation in global value chains and assessing prospects for monetary and financial convergence within BRICS. Together, the contributions provide concise insights into key trade-offs shaping the future economic development of BRICS and related economies.

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Pharmaceutical products trade dynamics of BRICS (BRICS10): Global positioning, intra-bloc trade, and future policy directions
Fenghui Fan, Natalia Grigorieva


This study examines pharmaceutical trade dynamics within the expanded BRICS10 grouping, comprising the original BRICS5 members (Brazil, Russia, India, China, and South Africa) and five countries that joined in 2024–2025: Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia (these five hereafter referred to as “BRICS Newcomers,” abbreviated as “Newcomers”). The 10 countries are collectively referred to as “BRICS10.” Focusing on 2012–2023, the study explores whether trade patterns within BRICS5, among Newcomers, between the two groups, and across BRICS10 reveal structural asymmetries or early integration signals.
A 12-year country-level panel was built using United Nations Comtrade HS Code 30 data on pharmaceutical products. Missing values for Iran and Russia were filled using reclassified mirror statistics. Key indicators included compound annual growth rates (CAGR), trade balances, intra- and inter-group trade shares, and 1 080 dyad-level Trade Intensity Index (TII) scores. Data processing and visualization were conducted using R.
In 2023, BRICS10 accounted for 9.7% of global pharmaceutical imports and 4.7% of exports. Intra-bloc trade was limited and uneven: 64.4% of the dyads were under-traded, with a TII of less than 1, and only 3.1% reached very high intensity (TII ≥ 15). India was the sole net exporter, while most members remained dependent on imports. Trade spikes driven by the pandemic were short-lived.
This is the first time-series analysis of pharmaceutical trade between BRICS10 countries at the dyad level. It reveals structural imbalances and under-trading on a large scale, providing new evidence to support policies aimed at promoting regional pharmaceutical integration and enhancing health system resilience through South–South cooperation.

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https://brics-econ.arphahub.com/article/153294/

Modelling Financial Sector Reform and Resource Dependence Effects on Macroeconomic Stability In SSA: Re-Enacting Africa’s Quest for Long-Term Development
Oluwafemi Adeboje, Frank Ogbeide, Isiaka Akande Raifu

Abstract
This paper examines the influence of financial sector reform on macroeconomic stability in 14 SSA countries by employing a traditional panel, dynamic panel framework, and causality tests on data from 2000 to 2021. It explores whether income groupings of the sampled countries in line with the World Bank classification matter for the outcomes of the analysis. The results suggest that financial reform policies can both induce and prevent economic instability. They increase instability in the lower-middle and upper-middle-income countries, as seen in the overall estimated dynamic panel models, but they reduce it in low-income economies. The static panel models produced similar results. It has also been shown that the rent from natural resources had uniformly damaging effects on the macroeconomic stability of all income groups in SSA, effectively confirming the “resource curse” thesis. Yet, the findings of the panel as a whole contradicted this, suggesting that revenue from natural resources can effectively play a role in stabilizing macroeconomic conditions. The results also suggest the existence of what can be called “a human capital-misery trap”, in which higher human capital development can lead to macroeconomic instability. Inflation was found to have a detrimental effect, and the impact of government interventions appeared to be mixed. This paper emphasizes the need for robust financial reforms and comprehensive policy measures in Sub-Saharan Africa (SSA), aiming to enhance the effectiveness, competitiveness, and stability of the financial sector and the broader economic landscape, which will require prudent management of natural resources.

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https://brics-econ.arphahub.com/article/162459/

Analyzing Integration of BRIC into GVCs: A Value-Added Trade Perspective
José Firmino de Sousa Filho, Gervásio Ferreira dos Santos, Luiz Carlos de Santana Ribeiro, Rodrigo Barbosa de Cerqueira

Abstract
This paper examines the involvement of Brazil, Russia, India and China (BRIC) in the global value chains (GVCs) between 2000 and 2014. It focuses on domestic value-added exports and vertical specialization. We use WIOD tables to assess the position of these countries in GVCs and a decomposition of their trade in terms of value added. China exhibits substantial growth in all indicators, whereas the other countries’ results appear to be mixed. The study also considers the economies of Mexico and South Korea, highlighting Mexico’s declining participation in GVCs in contrast to the steady growth of South Korea’s involvement. To ensure sustained long-term economic growth, the BRICS countries and other emerging economies should create a common growth agenda and increase their participation in global value chains. The paper provides insights into the dynamics of trade and vertical specialization and thus contributes to better understanding of economic relations between the BRICS countries and other emerging economies.

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https://brics-econ.arphahub.com/article/154692/

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.

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https://brics-econ.arphahub.com/article/144680/

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.

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https://brics-econ.arphahub.com/article/147499/

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.

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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.