The relationship between financial development and economic growth: A comparative analysis on BRICS countries and Türkiye

This study examines the relationship between financial development and economic growth with a focus on Turkey, aiming to evaluate this relationship comparatively within the context of BRICS countries. Financial development is considered one of the fundamental pillars of economic development, directly influencing processes such as capital accumulation, investment financing, and resource allocation. In this context, the period between 2014 and 2024 was selected, and Turkey's level of financial development during this time was analyzed through various indicators. The main indicators used in the study include the M2/GDP ratio, total credit volume, bank branch density, mobile banking usage rate, stock market capitalization/GDP ratio, gross fixed capital formation, and per capita income level. These indicators were evaluated both within Turkey's internal dynamics and comparatively with the BRICS country group. The findings show that Turkey performs above the BRICS average in certain digitalization and banking indicators. The study concludes that while Turkey's financial system structure resembles that of BRICS countries and stands out in digital financial inclusion, structural deficiencies persist in terms of financial depth and efficiency. The thesis emphasizes that financial development and economic growth are mutually interactive, highlighting the need for progress in financial transparency, risk management, and financial literacy for sustainable growth. Moreover, through policy recommendations, it concludes that transforming Turkey's financial system into a more stable, inclusive, and efficient structure will support economic growth.