EconPapers    
Economics at your fingertips  
 

Does exchange rate volatility affect financial depth? Evidence from BRICS countries

Oğuzhan Şengül
Additional contact information
Oğuzhan Şengül: İLBANK A.Ş., Turkey

Theoretical and Applied Economics, 2021, vol. XXII(2021), issue 1(626), Spring, 247-258

Abstract: Deepening of financial system in emerging market economies is crucial for economic development. Financial depth enhances the ability of financial system to supply funds to private sector. In this study, the impact of exchange rate volatility on financial depth in Brazil, Russia, China and South Africa is investigated in the short and long run. In this regard, annual data belonging to 1980-2018 period is used. The findings obtained from empirical analyses confirm that real exchange rate is not a factor that affects financial depth and so financial development. On the other hand, financial depth is a factor affecting exchange rate volatility in Brazil, Russia, China and South Africa. These results may be a reason of relatively enough size and development of financial systems. Moreover, dominancy of public sector in financial system may be another reason.

Keywords: financial depth; exchange rate volatility; BRICS economies. (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://store.ectap.ro/articole/1530.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1530&rid=142 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:1(626):y:2021:i:1(626):p:247-258

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Marin Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Bibliographic data for series maintained by Marin Dinu ().

 
Page updated 2021-06-17
Handle: RePEc:agr:journl:v:1(626):y:2021:i:1(626):p:247-258