The Importance of BRICS for the trade flow of the segment Brazilian wood pulp with Russia

Naisy Silva Soares,Lyvia Julienne Sousa Rêgo ,Letícia Soares Viana ,Carlos Eduardo Iwai Drumond,Emilly Lima De Matos

doi:10.33448/rsd-v11i3.22861

Naisy Silva Soares, Lyvia Julienne Sousa Rêgo + Show 3 more

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https://doi.org/10.33448/rsd-v11i3.22861

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Abstract

The term BRICS, referring to the emerging countries Brazil, Russia, India, China and South Africa, aroused interest of many investors. However, there are still few studies that evaluate the evolution of trade flows between Brazil and BRICS, especially with Russia. This study analyzed the importance of BRICS (Brazil, Russia, India, China and South Africa) for the Brazilian wood pulp segment's trade flow with Russia from 1997 to 2016, comparing the period before and after of the formation of BRICS. The Indexes of Trade Intensity, Regional Orientation, Grubel and Lloyd and Menon and Dixon were used as methodological tools. The obtained results indicated that the formation of the BRICS was very important for the Brazilian wood pulp trade with Russia; trade between these nations has intensified; and the trade pattern proved to be inter-industrial. Thus, it is believed that trade between Brazil and Russia is promising and should be encouraged, as well as the BRICS.

Highlights

Over the years, Brazil has enhanced a diversified wood wood pulp and paper industry with a great capacity for future growth, both for supplying the domestic market and the foreign market
During the period proposed for analysis, it was observed that during almost the entire period, with the exception of the years 2008, 2009 and 2010, the IIC between Brazil and Russia was less than or equal to 1, which would result in an indifferent market for Brazil, since the weight of exports to Russia follows the same as world imports (Table 1)
There is a gradual increase in the intensity of trade between Brazil and Russia, after the formation of the BRICS, that is, the average IIC between the years 1997 to 2008, the period preceding the formation of the economic group, was 0.15 while from 2009 to 2016 the average IIC was of the order of 0.80, indicating an increase of 427% (Table 1)

Summary

Introduction

Brazil has enhanced a diversified wood wood pulp and paper industry with a great capacity for future growth, both for supplying the domestic market and the foreign market. Some factors favored the growth of Brazilian wood pulp production and exports as favorable edaphoclimatic conditions to eucalyptus cultivation, short cycle and rapid production, advanced silvivulutral technology, quality of Brazilian wood pulprecognized abroad, government policies and, the formation of economic blocks (Soares, 2010). In this case, the formation of BRICS, a political alliance composed by Brazil, Russia, India, China and South Africa, since 2009, may have favored the growth of Brazilian wood pulp exports (Viana, 2019). These are some measures adopted in the case of BRICS

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