Business & Management Studies

Abstract

The international regional economic integration is developing to a broader and higher standard. The BRICS countries have been cooperating for a long time. As the representatives of the emerging economies of the world, the establishment of a free trade zone by the BRICS can not only promote economic and trade growth among the BRICS members, but also help the developing countries to speak in the new round of international economic and trade rules reshaping. Based on the above background, this paper uses the GTAP-E model to simulate the economic effects of the BRICS free trade area with the zero tariff and exception sectors scenarios to simulate the expected economic effects of the BRICS free trade area. The construction of the BRICS free trade zone has brought different impacts on different industries of member countries, and the overall optimization and adjustment in the direction of their respective comparative advantages. Resource integration in the industrial sector can increase productivity in BRICS countries.