Title: Financial development, country governance and economic growth: evidence from BRICS economies

Authors: Byomakesh Debeta; Sangita Dutta Gupta; Mafruza Sultana

Addresses: BITS Pilani, Vidya Vihar, Pilani, Rajasthan-333031, India ' BML Munjal University, 67th Milestone, NH 48, Kapriwas, Haryana-122413, India ' Bharathidasan Institute of Management, P. Box 12, MHD Campus BHEL Complex, Tiruchirappalli-620014, India

Abstract: This paper investigates the impact of financial development and governance on the economic growth of BRICS economies for a sample period spanning from 1992 to 2017. Besides financial development and governance, this study considers the macroeconomic variables, trade openness, economic freedom, human capital formation, life expectancy, and inflation which have been considered the essential determinants of economic growth. Dynamic panel data models, more specifically, generalised method of moments techniques were used for the analysis. Data on governance was collected from World Bank reports. The empirical findings suggest that financial development is positively associated with economic growth. Good governance, control of corruption, and an effective rule of law affect economic growth positively. The findings from this study have implications for policymakers, corporate managers, and investors to create a stable and vibrant financial system.

Keywords: economic growth; financial liberalisation; financial market; generalised method of moments; GMM.

DOI: 10.1504/IJSOM.2025.150656

International Journal of Services and Operations Management, 2025 Vol.52 No.4, pp.423 - 436

Received: 16 Aug 2021
Accepted: 05 Apr 2022
Published online: 19 Dec 2025 *

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