DRIVERS OF ECONOMIC GROWTH IN BRICS: EXPLORING THEROLE OF DIGITAL TRADE, FINTECH, NATURAL RESOURCESAND REMITTANCES

Abstract

Development and advances in financial institutions help to improve economic
growth through several channels. Fintech is also one of the important aspects that
can advance economic development and can also change the resource market
dynamics. In addition, trade can also boost economic growth considering recent
trends. Therefore, this study examines the role of digital trade, fintech, and natural
resource rent to analyze the economic growth of the BRICS countries. The data
considered in this study ranged from 2004-2023. After conducting the necessary
preliminary tests, the current research used the method of moments quantile
regression (MMQR). The estimated coefficient proposed natural resources
negatively impacting the growth which confirms the resource curse dilemma. On the
other hand, fintech positively impacts economic growth. Moreover, the estimated
coefficients significantly show variation in growth quantiles.
Keywords: Financial Institutions, Development, Fintech