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Business and Economics Journal

ISSN: 2151-6219

Open Access

CENTRE PERIPHERY RELATIONSHIP: An Analysis About BRICS In Two Last Decades

Abstract

Jorge Italo de Lima*

The major goal of this study is to look at the profile and potential implications of capital flows into BRICS nations Brazil, Russia, India, China, and South Africa from 2010 to 2021, using Ral Prebisch's viewpoint on the centre periphery system. The technique utilised is hypothetical deductive, and the methodological procedure entails bibliographic research from articles, books, and scientific works on the subjective, in addition to the descriptive method and data analysis. In this way, it aimed to comprehend the concept of the centre-periphery system, which was first proposed in the 1950’s, as well as its characteristics; an overview macroeconomic panorama of countries from the BRICS is presented, followed by data from the international monetary fund, and finally, data from the world bank, analysis the capital flow profile transacted among the BRICS countries, above all from the financial account from balance of payments. It was verified that the peripheral countries have large speculative capital flows, short-term, compared to direct long-term investments. In addition, it was possible to determine the economic policy of these countries and their financial assets. Analyse the capital flow profile among the BRICS nations, particularly from the perspective of the financial account and the balance of payments. It was confirmed that the periphery nations had a high level of short-term speculative capital flows relative to direct long-term investments. It was also able to establish these countries' economic policies as well as their financial assets.

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