PRODUCT SOPHISTICATION AND EXPORT COMPETITIVENESS IN BRICS AND SELECTED ASIAN ECONOMIES: A HETEROGENEOUS PANEL ANALYSIS USING THE METHOD OF MOMENTS QUANTILE REGRESSION (MMQR)

This research paper examines the predictors of export competitiveness between 15 BRICS and some selected Asian economies between the years 1990 and 2024 through the Method of Moments Quantile Regression (MMQR) method, an estimator appropriate for heterogeneous panels that exhibit cross-sectional dependence and slope variation. The empirical model is based on a clear capability-accumulation mechanism that connects product sophistication, absorptive capacity, and participation in the global value chain (GVC) to export competitiveness. The findings reveal that the influence of the product complexity is strong and, in any case, positive and grows with the levels of competitiveness. Human capital and total factor productivity (TFP) show higher importance in higher quantiles, which leads to the assumption of the absorptive capacity. The involvement in GVC becomes a significant avenue especially for the middle-performing economies. The REER reports a positive but stable impact, and the exchange rate dynamics play an important role. The effects of FDI and trade openness are modest but rising at higher quantiles. These results are validated by robustness tests with FMOLS and DOLS. Policy implications indicate a differentiated strategy where economies with low performance should emphasize structural upgrades and GVC integration, whereas the economies with high performance should emphasize innovation and technological development as a means of maintaining their export competitiveness.