The impact of economic integration on foreign trade: a case study of the BRICS countries with the applying of the PANEL ARDL (RE-FE) model during the period 2010-2024

Our study aims to demonstrate the impact of economic integration on foreign trade in terms of exports and imports, whether goods or services. We adopted the descriptive approach to mention the theoretical aspect of the study variables, as well as the statistical analytical approach to analyze various data related to integration and foreign trade through two basic hypotheses: the first is the existence of a negative effect (trade diversion) and the other is positive (trade creation). We applied our study to the BRICS bloc in 2011 by applying a PANEL ARDL model based on the EVIEWS program. We finally reached results consistent with economic theories related to the influential relationship between economic integration and foreign trade. We concluded that there is a negative effect represented by trade diversion and a positive effect represented by trade creation in the BRICS bloc.