Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners

The paper is devoted to the construction of models for forecasting the volume of trade between Russia and the BRICS countries under sanctions. Trade between the BRICS countries is the economic foundation of their comprehensive interaction and prosperity, therefore the problem of high-quality forecas...

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Main Authors: L. O. Babeshko, V. A. Byvshev
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2024-04-01
Series:Финансы: теория и практика
Subjects:
Online Access:https://financetp.fa.ru/jour/article/view/3255
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author L. O. Babeshko
V. A. Byvshev
author_facet L. O. Babeshko
V. A. Byvshev
author_sort L. O. Babeshko
collection DOAJ
description The paper is devoted to the construction of models for forecasting the volume of trade between Russia and the BRICS countries under sanctions. Trade between the BRICS countries is the economic foundation of their comprehensive interaction and prosperity, therefore the problem of high-quality forecasting of the volume of this trade under unprecedented Western sanctions against Russia seems to be a relevant task of econometric modeling. The aim of the study is to improve the accuracy of forecasts of Russia’s trade turnover with BRICS partners by ensuring the stability of the forecasting model in the context of sanctions pressure from Western countries and the pandemic. The econometric tool chosen is a system of simultaneous equations describing the foreign trade turnover of each country (other than Russia) using annual levels of macroeconomic factors: the GDP of the BRICS countries, Brent oil prices, the US dollar exchange rate and the pandemic indicator over the time period 2000–2022. In order to take into account structural changes in fast-growing economies such as India and China, two-phase models (switching models) were used to describe their behavioral equations in a system of simultaneous equations. As a test for the significance of structural changes, due to the small sample size after structural changes, the Chow forecast test was used. Taking into account significant structural changes (in the post-pandemic period) within the framework of switching models allowed us to increase the accuracy of the forecast of the volume of trade turnover of the Russian Federation by 2.5 times.
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spelling doaj-art-64adf49b38614bddada5da55d31d93eb2025-08-20T03:00:41ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892024-04-010010.26794/2587-5671-2025-29-4-1902-011210Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS PartnersL. O. Babeshko0V. A. Byvshev1Financial UniversityFinancial UniversityThe paper is devoted to the construction of models for forecasting the volume of trade between Russia and the BRICS countries under sanctions. Trade between the BRICS countries is the economic foundation of their comprehensive interaction and prosperity, therefore the problem of high-quality forecasting of the volume of this trade under unprecedented Western sanctions against Russia seems to be a relevant task of econometric modeling. The aim of the study is to improve the accuracy of forecasts of Russia’s trade turnover with BRICS partners by ensuring the stability of the forecasting model in the context of sanctions pressure from Western countries and the pandemic. The econometric tool chosen is a system of simultaneous equations describing the foreign trade turnover of each country (other than Russia) using annual levels of macroeconomic factors: the GDP of the BRICS countries, Brent oil prices, the US dollar exchange rate and the pandemic indicator over the time period 2000–2022. In order to take into account structural changes in fast-growing economies such as India and China, two-phase models (switching models) were used to describe their behavioral equations in a system of simultaneous equations. As a test for the significance of structural changes, due to the small sample size after structural changes, the Chow forecast test was used. Taking into account significant structural changes (in the post-pandemic period) within the framework of switching models allowed us to increase the accuracy of the forecast of the volume of trade turnover of the Russian Federation by 2.5 times.https://financetp.fa.ru/jour/article/view/3255foreign trade turnoversystem of simultaneous equationsautoregressive model with distributed lagsmodel diagnosticsstructural breakschow predictive testtwo-phase model
spellingShingle L. O. Babeshko
V. A. Byvshev
Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners
Финансы: теория и практика
foreign trade turnover
system of simultaneous equations
autoregressive model with distributed lags
model diagnostics
structural breaks
chow predictive test
two-phase model
title Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners
title_full Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners
title_fullStr Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners
title_full_unstemmed Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners
title_short Analysis of the Stability of the Model for Forecasting Mutual Volumes Russia’s Trade with BRICS Partners
title_sort analysis of the stability of the model for forecasting mutual volumes russia s trade with brics partners
topic foreign trade turnover
system of simultaneous equations
autoregressive model with distributed lags
model diagnostics
structural breaks
chow predictive test
two-phase model
url https://financetp.fa.ru/jour/article/view/3255
work_keys_str_mv AT lobabeshko analysisofthestabilityofthemodelforforecastingmutualvolumesrussiastradewithbricspartners
AT vabyvshev analysisofthestabilityofthemodelforforecastingmutualvolumesrussiastradewithbricspartners