Trade openness, Financial Stability and Economic rowth Evidence from Some BRICS Countries: Russia, India and South Africa from (1988-2022)

الملخص

This study examines the relationship between trade openness, financial Stability, and economic growth in Russia, India, and South Africa using time-series data from 1988 to 2022. The analysis employs the Johansen co-integration test (JCT), vector error correction model (VECM), and Wald Granger causality (WGC) approaches. The findings reveal a long-term relationship among trade openness, financial Stability, and economic growth in all three countries. In the long run, Russia and South Africa exhibit unidirectional causality from financial stability and trade openness to economic growth, while India displays bidirectional causality. In the short run, trade openness shows no direct causal relation with growth, and a weak causal link exists between financial Stability and economic growth in Russia and South Africa. No significant short-term causal relations are observed in India. Based on these findings, the study recommends fostering both trade openness and financial Stability in India, prioritizing financial sector reforms for stability in Russia and South Africa, and focusing on policies that reduce trade barriers and enhance trade infrastructure to stimulate economic growth.