The FinTech paradox: accelerating economic growth while pressuring natural resources in BRICS
Journal of Economics and Finance, cilt.50, sa.1, 2026 (ESCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 50 Sayı: 1
- Basım Tarihi: 2026
- Doi Numarası: 10.1007/s12197-026-09795-5
- Dergi Adı: Journal of Economics and Finance
- Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, IBZ Online, ABI/INFORM, EconLit, Business Source Ultimate (EBSCO), Health Research Premium Collection (ProQuest), Pharma Collection (ProQuest)
- Anahtar Kelimeler: BRICS, FinTech, Green growth, Industrial value-added, Natural resources, Sustainable development
- Maltepe Üniversitesi Adresli: Evet
Özet
This study examines the paradoxical role of financial technology (FinTech) in BRICS economies, where rapid digital financial innovation simultaneously supports economic and industrial growth while increasing pressure on natural resources. Using panel data from BRICS countries (Brazil, Russia, India, China and South Africa) for the period 2006–2020, the study investigates the long-run relationships among FinTech, green growth, natural resource rents, and industrial value-added. A FinTech index is constructed via principal component analysis using five indicators capturing the multidimensional nature of digital finance. The Panel Fourier Cointegration test, which accounts for smooth transition structural breaks and cross-sectional dependence, is employed to examine long-run relationships, while the Augmented Mean Group (AMG) estimator is used for coefficient estimation. To ensure robustness, findings are further validated using the one-step System GMM and the Common Correlated Effects Mean Group (CCEMG) estimators. The results consistently show that FinTech positively affects green growth and industrial value-added, while it also intensifies natural resource exploitation. Country-specific analyses uncover substantial heterogeneity across BRICS members, reflecting differences in institutional quality, energy dependence, and maturity digital finance. Causality tests further confirm that FinTech acts as a catalyst for green growth, natural resource rents, and industrial value-added. These findings suggest that while FinTech holds real potential as a driver of industrial efficiency and low-carbon transition, its environmental costs must be actively managed through green FinTech regulation, resource traceability policies, and coordinated governance frameworks across BRICS economies.