The effect of financial involvement on economic growth: BRICS-T example

The financial system, which has proved its importance with each passing year in the economic system, has become a market that can be reached by economic units from all segments with information technologies and globalization. Thanks to financial intermediaries such as banks and banks providing services to the financial market, the financial instruments can have diversify each year and help investors both reduce risk and increase their choice options. Financial development, financial system development and diversification in financial instruments provides financial deepening today, the effects of these economic changes on economic growth or development is one of the most studied issues in recent years. The effect of financial deepening is examined on economic growth with panel data method for teh 1974-2018 in Brazil, China, India, South Africa and Turkey. In the first part of the study, include explanations about the research. In the second part, financial system and the markets and the theoretical information about the financial system, the concept of financial deepening and the macro-economic indicators of the BRICS-T countries are mentioned. In the third chapter, financial deepening and macroeconomic indicators of the countries examined are given. In the fourth section, the literature review and the following sections include materials, methods and findings. In the study using panel data method, a two-way causality relationship was found between money supply and economic growth, which is one of the financial deepening indicators, and economic growth, was revealed. The causality relationship has been found from saving to economic growth. There is undirectional causality from savings to economic growth. As a result of the regression analysis, while the accumulation of capital and money supply positively affect the economic growth, the loans provided by the savings and finance sector negatively affect the economic growth.