The role of the New Development Bank on Economic growth and Development in the BRICS states

Sithole, Mixo Sweetness and Hlongwane, Nyiko Worship (2023): The role of the New Development Bank on Economic growth and Development in the BRICS states.

Abstract

The purpose of this study is to analyse how the BRICS countries' New Development Bank (NDB) promotes economic growth and development. This study aims to evaluate the influence of the NDB on crucial measures of economic growth and development in the BRICS nations by a thorough review of the bank's operations, financing mechanisms, and project portfolios. The study utilized the panel data from 1997-2022 using variables such as economic growth, employment, and trade. The study deployed a PMG estimator and Granger causality model. The results revealed positive bidirectional statistically significant relationship between broad money and economic growth in BRICS. The study recommended that NDB should promote growth of broad money as it boosts economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: New Development Bank, Economic growth, BRICS, Pooled Mean Group estimator, Granger causality.
• Subjects: C - Mathematical and Quantitative Methods > C0 - General; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables

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