عنوان مقاله [English]
The purpose of this research is to investigate the Linder theory in BRICS countries applying different exchange rate arrangements. Countries examined in this study group, consists of 5 countries during the years 2001-2013 using the generalized gravity model and a two-step method of moments, generalized system of (GMM). Common unit root tests for dynamic panel data, Sargan and serial correlation (M2) was applied in order to evaluate stationary of variables, no correlation between the instruments and stochastic terms and limits of generalized moments. The results showed that using free floating exchange rate arrangement had meaningless effects on bilateral trade in selected countries. Managed floating exchange rate arrangement had meaningful and negative effects while pegged and crawling pegged had positive effects on bilateral trade. The Linder hypothesis was significant and confirmed by applying different exchange rate arrangements in regional trade cooperation.