Financial System Development and Economic Growth:

A Case Study for the BRICS

Authors

  • Rosemberg Lemos Santana Júnior
  • Jeruza Haber Universidade Federal de Viçosa
  • Stefan Wilson D'Amato UFPA

DOI:

https://doi.org/10.33834/bkr.v12i1.335

Keywords:

financial system, Economic Growth, BRICS

Abstract

This study empirically examines the relationship between financial system development and economic growth, focusing on BRICS countries (Brazil, Russia, India, China, and South Africa) from 2000 to 2020. A dynamic panel data model was estimated using the System GMM method, with private sector credit (DCPS) and the broad monetary aggregate (M3) as proxies for financial development, along with control variables such as gross fixed capital formation, inflation, and the real effective exchange rate. Results indicate that monetary expansion (M3) had positive and significant effects on economic growth in BRICS, whereas private credit displayed a negative and marginal impact. Furthermore, maintaining a competitive exchange rate proved essential for sustained growth. The findings suggest that the combination of monetary expansion, productive investment, and exchange rate stability is key to supporting long-term economic growth in these economies, reinforcing the post-Keynesian view of the integration between money, credit, and development.

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Published

2026-06-26

How to Cite

Lemos Santana Júnior , R., Haber, J., & D’Amato, S. W. (2026). Financial System Development and Economic Growth: : A Case Study for the BRICS. Brazilian Keynesian Review, 12(1). https://doi.org/10.33834/bkr.v12i1.335

Issue

Vol. 12 No. 1 (2026): BKR V.12 N.1

Section

Articles

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Copyright (c) 2026 Rosemberg Lemos Santana Júnior , Jeruza Haber, D'Amato

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