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Redefining global trade patterns: BRICS, G7, and technological trade in Latin America

Author

Listed:
  • Silva Neira, Ignacio
  • Pédussel Wu, Jennifer

Abstract

In 2024, new members joined the original BRICS countries, reinforcing their aspirations as a relevant global actor. This study examines Latin American countries' export structures orientation towards BRICS versus G7 markets. Using a unique dataset and a structural gravity model, we estimate the determinants of export intensity with a focus on the technological content of traded goods and assess whether integration with these two blocs offers distinct pathways for upgrading into higher-value segments of trade. Our findings reveal persistent structural constraints: while both blocs demand resource-intensive exports from Latin America, opportunities to expand midand high-tech exports remain limited. Results suggest that R&D activities and domestic technological capacities do not translate into greater high-tech export performance, highlighting structural difficulties of Latin American economies moving up the value chain and that global trade remains shaped more by the nature of demand in destination markets than by technology adoption at home.

Suggested Citation

  • Silva Neira, Ignacio & Pédussel Wu, Jennifer, 2026. "Redefining global trade patterns: BRICS, G7, and technological trade in Latin America," IPE Working Papers 269/2026, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:341098
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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