Topic
Exploring causality between financial development and economic growth in BRICS by time series analysis
Instructions
Write a dissertation proposal (1500 words) on Exploring causality between financial development and economic growth in BRICS by time series analysis.
Answer preview
The development of a country is dependent on the link between financial development and overall growth of the economy. Studies using panel analysis have suggested that countries with solid financial systems exhibit favourable conditions in the economy (Bist, 2018; Durusu-Ciftci, Ispir and Yetkiner, 2017). This implies that economic growth and financial development have a linear relationship, meaning that changes in one factor result a substantial change in the other. However, the relationship remains contentious as scholars hold different perspectives regarding the impact of different financial systems on different economic systems. In this view, financial development is not considered as the sole determinant of economic growth, but as a mediating factor that may positively or negatively affect the growth of an economy.
Word count: 1724