Abstract

This study employs the pooled mean group estimator to examine the effects of gross domestic product (GDP), population size, integrated infrastructure, geographical distance, common language, common border, landlock, ethnicity, and WTO membership, using an updated dataset for Pakistan and BRICS economies from 1990 to 2021. Harris-Tzavalis's and Levin-Lin-Chu's tests confirm the stationarity of the regressand and regressors at I (0) and I (I), allowing for the utilization of the pooled mean group estimator panel ARDL. Results from the Kao and Pedroni cointegration tests indicate cointegration among the variables. Empirical results of the Pooled Mean Group (PMG) reveal that GDP, infrastructure, common borders and languages, and WTO agreements have positive and significant impacts on trade flows, while distance and ethnicity negatively affect trade performance. Further policies are recommended based on the findings.