IS DIGITALISATION A CATALYST FOR BRICS COUNTRIES’ EXPORTS? AN EMPIRICAL ANALYSIS

Marida Nach; Ronney Ncwadi

doi:10.63356/ace.2025.006

Authors

Marida Nach School of Economics, Development and Tourism, Faculty of Business and Economics Sciences, Nelson Mandela University, South Africa https://orcid.org/0000-0003-2452-6464
Ronney Ncwadi School of Economics, Development and Tourism, Faculty of Business and Economics Sciences, Nelson Mandela University, South Africa https://orcid.org/0000-0002-7865-6996

DOI:

https://doi.org/10.63356/ace.2025.006

Keywords:

digitalisation, exports, BRICS, global trade, ICT, technology adoption, ARDL

Abstract

Digitalisation is a key catalyst which transforms international trade by enhancing efficiency, reducing costs, expanding market access and unlocking new opportunities, significantly boosting export performance. Understanding this interplay is essential for Brazil, Russia, India, China and South Africa (BRICS) countries, major players in global trade. This study examines the digitalisation-exports relationship in BRICS, specifically how Information and Communication Technology (ICT) catalyses exports. Using a combination of panel and country-specific autoregressive distributed lag (ARDL) models, this method captures country heterogeneity and both short-term and long-term dynamics. Panel autoregressive distributed lag identifies common BRICS trends, while country-specific autoregressive distributed lag highlights distinctive country effects, strengthening the analysis. Results show that, in the short term, Information and Communication Technology’s effect on exports varies across models. However, in the long term, Information and Communication Technology consistently exerts a statistically significant effect. Findings emphasise digitalisation’s pivotal role in enhancing BRICS exports, particularly long term. Yet, effectiveness differs across countries. Disparities in digital infrastructure, digital literacy and institutional quality suggest digitalisation alone is insufficient. Addressing these challenges enables BRICS to leverage digitalisation and strengthen their position as prominent emerging export countries. This study contributes to the digital economy discourse with empirical evidence-based policy implications.

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