Institutional Quality Convergence Among BRICS and BRICS Plus

Abstract

The paper seeks to assess the relevance of BRICS as an analytical category by examining six indicators of good governance and investigating whether BRICS membership has led to institutional convergence among its members. The primary data source for this study is the Worldwide Governance Indicators provided by the World Bank for the period 2006-2020. These indicators focus on six key dimensions that assess the quality of governance within the BRICS countries and the six BRICS Plus candidate nations. Following the approach outlined by Phillips and Sul (2007, 2009), the analysis reveals convergence in five of these indicators among the BRICS countries, with the exception of the Control of Corruption. This discrepancy raises questions about the BRICS' role and influence as an international organization. However, it is worth noting that none of the six potential BRICS Plus candidates exhibit full cointegration or convergence with all the indicators used to assess the BRICS. The results, encompassing both cointegration and convergence, highlight the significant challenges in achieving complete alignment for the emerging BRICS Plus group.