Trade Liberalization within Intra-BRICS and the Rule of Law

Abstract

Abstract The main aim of this research is to seek the potential for Trade liberalization between Intra-BRICS and the impact on the Rule of Law, searching for issues that are hampering or would hamper the BRICS collaboration and economic growth. If any political and legal systems or organization that implements Loyalty to the interests of the rule of law would contribute tremendously to the progress of regional or community economic growth, lack of the rule of law can seriously hinder the idea of Trade liberalization and intra-regional or intra-community trade. I am arguing that even if trade barriers are removed from trade collaboration, and if there is no loyalty to the rule of law there will still be barriers that will hinder trade liberalization. For example, if the country is very corrupt the corrupt officials could delay goods entering the country by making unnecessary excuses so that bribe could be given thereby creating uncomfortable and unfair situations and thereby stimulating difficulties for businesses not to flow freely as it was previously anticipated. The important goal of the BRICS treaty is to stimulate sustainable economic growth of the BRICS countries. I examine the contribution to the BRICS countries integration to economic growth of the countries using subservient variables GMM regression in the framework of a growth model. I found great substantial empirical affirmation for a positive economic cooperation and growth. The results of some variables showed negative impact because of the distance that exist on members of the BRICS countries which hinders perfect cooperation and economic benefits but there were positive impacts on economic cooperation.