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

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  • Sithole, Mixo Sweetness
  • Hlongwane, Nyiko Worship

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.

Suggested Citation

  • Sithole, Mixo Sweetness & Hlongwane, Nyiko Worship, 2023. "The role of the New Development Bank on Economic growth and Development in the BRICS states," MPRA Paper 119958, University Library of Munich, Germany, revised 26 Jan 2024.
    • Handle: RePEc:pra:mprapa:119958
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    References listed on IDEAS

    as
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    4. Shimeles Abebe & Adeleke Oluwole Salami & Anthony M. Simpasa, 2015. "Working Paper 221 - Employment Effects of Multilateral Development Bank Projects The Case of the African Development Bank," Working Paper Series 2160, African Development Bank.
    5. Durusu-Ciftci, Dilek & Ispir, M. Serdar & Yetkiner, Hakan, 2017. "Financial development and economic growth: Some theory and more evidence," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 290-306.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    New Development Bank; Economic growth; BRICS; Pooled Mean Group estimator; Granger causality.;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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