Financial development, real sector and economic growth: Evidence from emerging market economies

Chandrashekar Raghutla and Krishna Reddy Chittedi

International Journal of Finance & Economics, 2021, vol. 26, issue 4, 6156-6167

Abstract: There is a developing concern among developed, developing, and emerging economies in relevance to increasing real sector expenditure across the world. As a result, all countries have started to increase their real sector expenditure by increasing the share of finance. Hence, this study aims to examine the effects of both financial development and real sector on economic growth; we choose five emerging market economies to explain the economic growth process between 2000 and 2016. The results of long‐run elasticities document that real sector and financial development play a significant role in promoting economic growth. The results also suggest that money supply, exchange rate and inflation have a considerable positive effect on economic growth, respectively. Given these findings, we suggest that both governments and policy makers of the BRICS nations to initiate more effective policies to increase the real sector expenditure and develop financial sector. The increasing real sector will allow the economies to grow further by ensuring sustainable economic development across the BRICS member countries.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://doi.org/10.1002/ijfe.2114

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:wly:ijfiec:v:26:y:2021:i:4:p:6156-6167

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().