Impact of Stock Market Liquidity on Economic Growth: Evidence from BRICS Countries

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The Anáhuac Journal
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Published: 2025-09-05
DOI: https://doi.org/10.36105/
Keywords:
BRICS, liquidity, economic growth, stock market

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Samuel Mongrut Montalvan
Universidad del Pacífico, Lima, Peru. Universidad Autónoma de Querétaro, Mexico
https://orcid.org/0000-0003-2081-5576
Vivian Cruz
Universidad del Pacífico, Lima, Peru
https://orcid.org/0000-0001-8802-4952
Roberto Castillo Dieguez
Universidad Autónoma de Querétaro, Mexico
https://orcid.org/0000-0002-3352-2265
Pilar Álvarez Franco
Universidad EAFIT, Medellin, Colombia
https://orcid.org/0000-0002-8557-6345

Abstract

This paper examines the relationship between stock market liquidity and economic growth in five emerging countries: Brazil, Russia, India, China, and South Africa, collectively referred to as the BRICS as of 2017. Using a dynamic panel data model, we find that proxies for stock market liquidity contain leading information about the real economy. Our results are robust even after controlling for macroeconomic covariates that affect both stock market and economic growth. We provide evidence that stock market liquidity contains strong and reliable information about the economic condition of BRICS during the period 2010-2017. Our study sheds light on the fact that stock market liquidity contains prospective news and information about the future state of economic growth.

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Vol. 25 No. 2 (2025): The Anáhuac Journal, Vol. 25, No. 2, 2025, Second Semester

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Author Biographies

Samuel Mongrut Montalvan, Universidad del Pacífico, Lima, Peru. Universidad Autónoma de Querétaro, Mexico

Samuel Mongrut holds a Ph.D. in Financial Economics from the University of Barcelona (Spain), a master’s in Economics from the University of Maastricht (Netherlands), and a bachelor’s in Business Administration from Universidad del Pacífico, Peru. He is currently a professor of Finance at the Universidad del Pacifico and the Universidad Autónoma de Querétaro, Mexico. He is also a visiting professor at several universities in Europe and Latin America, member of the National System of Researchers in Peru and Mexico, member of the research group for Investment Analysis and Uncertainty (IAFI) of the University of Barcelona, Spain, and member of the Board of the International Finance Conference (IFC).

Vivian Cruz, Universidad del Pacífico, Lima, Peru

Vivian Cruz is a Professor in the Department of Finance of the Universidad del Pacifico, and member of its Research Center. She holds a PhD in Economics and a master’s degree in Finance from Universidad EAFIT, Colombia, and a degree in Economics from the University of Havana (Cuba). She has research experience in banking, financial fragility, financial inclusion, microcredit, and financial modeling. She has worked as a consultant for institutions such as the IDB, the World Bank, ECLAC, and LACADI (Latin American Climate Asset Disclosure Initiative).

Roberto Castillo Dieguez, Universidad Autónoma de Querétaro, Mexico

Roberto Castillo Dieguez is a professor and researcher at the School of Accounting and Administration of the Autonomous University of Querétaro (UAQ). He holds a master’s degree in Analytics and Business Intelligence from the Universidad Tecnológica de México. Castillo Dieguez is full member of the Academia de Ciencias Administrativas A.C.—Academy of Administrative Sciences— (ACACIA) and the Red Internacional de Investigadores en Educación a Distancia, en Línea y Abierta (REDIC)—International Research Network on Distance, Online, and Open Education. His research focuses on territorial development, evaluation, multivariate statistics, finance, and econometrics. He was awarded the National Research Award by the ANFECA—Asociación Nacional de Facultades y Escuelas de Economía y Administración— in 2024 and received second place at the International Finance Conference, held in Durango in 2023 and Lima in 2024.

Pilar Álvarez Franco, Universidad EAFIT, Medellin, Colombia

Pilar Álvarez Franco works as a professor of Finance at Universidad EAFIT and a researcher at the Center for Research in Economics and Finance. Her academic work focuses on financial inclusion, financial education, financial well-being, and credit risk analysis using alternative data, with particular emphasis on vulnerable populations and gender gaps in access to financial services. She has led impact evaluations, designed financial well-being indicators, and conducted applied studies in collaboration with government agencies, NGOs, and financial institutions. She holds a Ph.D. in Business Administration from CENTRUM PUCP and a master’s degree in Economics and Finance from the State University of New York at Binghamton.

How to Cite

Impact of Stock Market Liquidity on Economic Growth: Evidence from BRICS Countries. (2025). The Anáhuac Journal, 25(2), 1-28. https://doi.org/10.36105/

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