Analyzing the complexities of export: a heterogeneous analysis of BRICS economies and product types

Abstract This study examines the determinants of export sophistication across BRICS countries (Brazil, Russia, India, China, and South Africa) from 2000 to 2022. It focuses on the heterogeneous effects of macroeconomic variables economic growth (GDP), foreign direct investment (FDI), human capital, and research and development (R&D) as well as the impact of the COVID-19 pandemic on export sophistication. The study employs the cross-sectionally augmented autoregressive distributed lag (CS-ARDL) approach, which effectively captures cross-sectional dependence and slope heterogeneity, improving upon traditional panel estimation techniques. The empirical findings indicate that GDP growth, FDI inflows, human capital, and R&D expenditures positively influence export sophistication in BRICS economies, while the COVID-19 pandemic exerts a negative effect. These insights offer important policy implications for enhancing export quality and economic resilience in emerging markets.