Testing the relationships between globalization, regionalization and the regional hubness of the BRICs

The BRIC economies are expected to further increase their share and importance in the world economy. Whereas their growth strategies and their integration in the world production system has been widely analyzed from different angles, it seems that there has been less attention paid to how integration in the global economy (and openness) is related to integration in the regional economy. Firstly, we will therefore propose a series of indicators to better assess the interdependence between the BRIC economies and the economies of their respective 'regions', be it institutionalized or de facto regions. Secondly, we will present a series of statistical tests to evaluate the relationship between globalization and regionalization. This should further clarify the implications of a scenario of sustained growth and globalization in the BRICs for the patterns and levels of production and trade in their regions of influence. Among the findings of this article, model estimations suggest that the relative globalization of the BRICs is related to more global sourcing by the BRICs, enhanced regional competitiveness of the BRICs, and more asymmetry and trade dependence from the perspective of the regional trade partners.