DOI: 10.3897/brics-econ.7.e138473

Authors: Palesa Lefatsa, Gabila Nubong

Abstract: This study investigates the interconnections between financial development, economic growth, and energy consumption within the Southern African Development Community (SADC) region between 1980 and 2023. Using the Panel Autoregressive Distributed Lag (PARDL) model alongside Dumitrescu and Hurlin (2012) causality tests, the research provides new insights into the dynamics of these variables. The study reveals a significant positive correlation between financial development, economic growth, and energy consumption. The key finding is the negative relationship between energy consumption and urbanization, while no significant linkage is found between energy consumption and industrialization. The Granger causality test reveals a unidirectional causal link between financial development, urbanization, and energy consumption, and a bidirectional relationship between economic growth and energy consumption. These findings contribute to existing literature by offering a more nuanced understanding of the region’s energy consumption dynamics compared to previous studies that have often presented inconclusive or context-specific results. This study extends previous research by examining the unique economic and energy challenges faced by the SADC countries, providing fresh evidence for policymakers focused on integrating financial sector development with sustainable energy policies. The study suggests that investing in renewable energy and expanding electricity access, especially in rural areas, could enhance both urbanization and financial sector growth, fostering broader economic development. The diagnostic checks affirm the robustness and reliability of the model, ensuring the validity of the findings.

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DOI: 10.3897/brics-econ.7.e151598

Authors: Tijani Forgor Alhassan, Gaukhar Kalkabayeva, Anar Kurmanalina

Abstract: The adoption and integration of artificial intelligence (AI) in Ghana’s and Kazakhstan’s financial sectors signifies a transformative change, driven by technological advancement and pursuit of greater efficiency, improved risk management and enhanced customer experience. The study provides a comparative analysis of AI adoption in developing countries, focusing on key areas such as banking, investment management, legal compliance and financial inclusion. AI adoption is gradually gaining attention in Ghana, where fintech start-ups and traditional banks are using AI for mobile banking, fraud detection, and credit scoring. However, challenges such as poor infrastructure, data security concerns and lack of a skilled workforce impede the widespread implementation of AI and its full realization. In contrast, Kazakhstan has made significant progress in adopting AI, driven by government initiatives, robust digital infrastructure, and growing fintech ecosystem. Financial institutions in Kazakhstan use AI for algorithmic trading, regulatory compliance and customer service automation, positioning the country as a regional leader in fintech innovation. Despite differences in the countries’ approaches to adopting AI, both economies face similar challenges, such as algorithmic bias, regulatory uncertainty and capacity-building needs. The present paper explains why tailored growth strategies are needed to address these issues. It highlights the importance of investment, public-private partnerships and legal frameworks in upskilling professionals and creating technological infrastructure. The two countries should develop roadmaps for AI-tailored growth policies in their financial sectors to ensure their effective adoption and implementation for financial development.

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DOI: 10.3897/brics-econ.7.e170868

Authors: Yang Jingjing, Shah Mir Mowahed, Mariam Reha

Abstract: In recent decades, the role of institutions has become a central topic of discussion among scholars and policy makers. This study used time-series data from Afghanistan between 1996 and 2024 to gain new insights into the impact of political instability (POI), corruption (COR) and government effectiveness (GEF) on economic growth. The results of Quantile-on-Quantile Regression and Wavelet Quantile regression reveal that POI, COR, and GEF have adverse and statistically significant effects on GDP growth across all quantiles and over long-term time periods. Event analysis through the interrupted time series technique shows that the key political events, including the Civil War (CW), the First Round of the Taliban Regime (FRTR), U.S.-NATO interventions (USN), the Second Round of Taliban Regime (SRTR), and Regime Changes (RCH), have had a negative impact on Afghanistan’s GDP growth. The immediate impact of the Soviet Union’s war is estimated to be positive. At the same time, Afghanistan’s GDP experienced negative growth during SUW, CW, FRTR, and RCH, while during USN and SRTR, the GDP growth was positive. Based on these findings, the paper discusses possible policy implications.

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DOI: 10.3897/brics-econ.6.e141289

Authors: Sipho Mbatha

Abstract: Clothing, textiles, leather, and footwear (CTLF) sector of South Africa has been a priority sector for the government for almost two decades. However, the CTLF sector has not been able to achieve the reindustrialisation levels envisaged by the government and other stakeholders. It is therefore necessary to explore the possibilities of gaining competitive advantage and also understand the challenges facing the sectoral systems of innovation that impede the development of the CTLF sector in South Africa. Through the triple helix theory of innovation and Porter’s diamond model of competitive advantage, this review paper looks at the CTLF sectors of two BRICS nations, Brazil and South Africa, in an attempt to determine the factors that could jump-start the competitive development of the South African CTLF sector. This paper outlines proposals for improving the sectoral systems of innovation in South Africa’s CTLF industry, which should help it gain competitive advantage. It also makes a scholarly contribution to designing strategies that could be used to enhance collaboration among the BRICS nations.

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DOI: 10.3897/brics-econ.6.e134961

Authors: Ayodeji Ajibola

Abstract: The paper investigates the relationship between corporate governance and organizational performance in Nigeria’s banking sector between 1996 and 2023, using the Tobin-Q valuation and operating performance methodology (quantitative characteristics) of variables in analyzing data collected from secondary sources. The internal mechanisms of corporate governance such as Returns on Assets (ROA), shareholder profit and Debt-Equity ratio had a negative impact on organizational performance. The study into forecast and long-term co-integration relationship between corporate governance mechanisms and organizational performance has shown that the enhancement of organizational performance by corporate governance mechanisms is likely to experience a steady increase after 2023.

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DOI: 10.3897/brics-econ.5.e121010

Authors: Sanela Porca-Konjikusic, Paul L. Hudson Jr., Lodha Jain Harshi

Abstract: This paper explores the realms of global economic integration by comparing the two prominent international organizations: the Association of Southeast Asian Nations (ASEAN) and Brazil, Russia, India, China, and the South Africa bloc (BRICS) and new entrants to BRICS Plus. The study examines the shared objectives, divergent approaches, and potential complementarity of these organizations. By analyzing their economic diversity, regional and global initiatives, and trade agreements, the research investigates the question of collaboration between BRICS and ASEAN organizations. This research finds a variety of economic disparities among members of both ASEAN and BRICS, a variety of investment patterns, economic policies, population and labor force dynamics, net portfolio investments, and capital flows. The paper provides a nuanced holistic analysis of ASEAN and BRICS. This article offers a unique, holistic analysis, comparing and contrasting ASEAN and BRICS countries and the nature of these two organizations. This paper includes policy recommendations related to fostering collaboration between nations in various aspects of their economies, and areas in which countries may strengthen financial ties. Knowledge of BRICS, BRICS Plus, and ASEAN gained through reading this article may enable them to decide on strategies to avoid trade barriers and may also enable them to identify countries with growth areas in various economic sectors.

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DOI: 10.3897/brics-econ.5.e120897

Authors: Kumar Akhilesh

Abstract: Science, technology, and Innovation (STI) have been the cornerstone of China’s Reform and Opening-up processes. Employing a hybrid methodology, including textual analysis, this paper asserts that four decades of reform and opening-up have witnessed STI’s pivotal role across sectors despite numerous challengesб such as economic slowdown, growing disparities, environmental issues, and a huge burden on the state-owned enterprises. China’s substantial investments in the Fourth Industrial Revolution technologies, including Artificial Intelligence and New Energy Vehicles, exemplify its commitment to innovation, reflected in over 2.5% of GDP allocated for research and development in 2022. This robust investment has bolstered China’s innovative capabilities and brought about its high ranking on the Global Innovation Index. In Chinese STI politics and policy-making, the programs like MLP-2006, SEI-2010 and Made in China 2025 have created a watershed moment. Three central research questions guide our exploration: the trajectory of policy framing on STI-Driven development, the theoretical underpinnings of Innovation-Driven Development and Green Development in Chinese STI politics, and the significance of these paradigms in China’s context. This paper also hypothesizes the emergence of two distinct trajectories within China’s STI politics through the adoption of Innovation-Driven Development and Green Development, positioning STI at the core of China’s development paradigm. The study thoroughly dissects China’s official discourse, framing these paradigms within the Sustainable Development context and highlighting their crucial roles in China’s journey toward technological advancement and sustainability. The analysis of the evolution of China’s STI policy as portrayed in official discourse offers insights into the strategic role played by science, technology, and Innovation in moulding China’s socio-economic trajectory alongside global implications stemming from its transformative development agenda.

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DOI: 10.3897/brics-econ.5.e119680

Authors: Sarvar Giyasov

Abstract: Uzbekistan’s cooperation with the BRICS countries is very important owing, first, to the growing economic power of the group members and, second, to its role in the qualitative transformation of the global South development scenarios. It should involve joint efforts based on contacts with regional partners, rather than competition, in order to strengthen balanced and inclusive economic growth, improve international competitiveness of the BRICS economies and achieve development levels comparable with those of advanced Western economies. The present paper uses statistical data on foreign economic relations of Uzbekistan and is based on content and comparative analysis of the main indicators related to exports and imports of the goods and services necessary for economic development of the partner countries. Presenting the results of Uzbekistan’s interaction with the BRICS countries, it identifies the main difficulties these countries are faced with, suggests ways of resolving them and outlines possible strategies for cooperation between Uzbekistan and the BRICS countries. This cooperation will help increase trade turnover, which will benefit all the parties involved. At the same time, it may cause serious problems in regional transport, logistics and financing. The paper also considers the BRICS countries’ links with other Central Asian countries.

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DOI: 10.3897/brics-econ.4.e96288

Authors: Thakur Dev Pandey

Abstract: The BRICS countries are frequently referred to as “emerging economies”; they account for a sizable proportion of the global population and face issues such as poverty, income inequality, slow economic growth, gender inequality, and high unemployment rates. Policy measures are currently being considered and implemented in response to these difficulties. Previous studies suggest that greater financial inclusion has a positive effect on such countries’ development, hence its importance as a tool used to deal with the socioeconomic challenges faced by emerging economies. When we talk about “financial inclusion,” we are referring to the ease with which people can access and make use of basic financial services, such as savings accounts, credit cards, and insurance. In this paper, we use data from the Global Findex Database and the World Bank Database to create the Financial Inclusion (Finclusion) Index, which provides a comparative measure of financial access for different nations. The primary purpose of this paper is to evaluate the effect of financial inclusion on HDI in 105 countries; per capita income and gender development are also compared across BRICS countries. The study found that financial inclusion had a significant impact on human development in general and a positive effect on the development of women in particular. The result is valid for the BRICS countries, where financial inclusion has considerably boosted human development and is positively correlated with women empowerment.

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