Resources, Innovation, Globalization, and Green Growth: The BRICS Financial Development Strategy

Resources, Innovation, Globalization, and Green Growth: The BRICS Financial Development Strategy
Author: Juanjuan Huang
Journal: Geoscience Frontiers
Volume & Issue: Volume 15, Issue 2
Published: March 2024

This study investigates the interplay of natural resources, innovation, globalization, and green growth in BRICS countries from 1990 to 2021, emphasizing the role of financial development. Using dynamic system panel data estimations and GLS regression, the study finds that natural resources, R&D, and financial development promote green growth. In contrast, globalization has a negative effect, highlighting the need for stronger environmental regulations and sustainable trade practices.

The research emphasizes that innovation is central to BRICS financial development strategies, fostering productivity, high-value jobs, and new industries. Green growth is a key pillar, with investments in renewable energy, clean technologies, and sustainable infrastructure aimed at decoupling economic growth from environmental degradation.

Policy implications suggest that BRICS countries should strengthen financial institutions, encourage green financing through incentives, and enhance financial literacy to promote sustainable investment. Additionally, integrating environmental considerations into trade policies and regulations can mitigate the negative effects of globalization on green growth.

The study notes limitations, including its focus on natural resources and globalization, and suggests future research incorporate broader factors such as social, political, technological, and legal influences. Comparative analyses across countries could offer further insights into effective green growth strategies.