Do Remittances and Financial Development Promote International Reserves in BRICS Economies?

The international reserves reflect the economy's strength by honoring its financial liabilities. Hence, this paper analyzed the effect of remittances and financial development on international reserves in Brazil, Russia, India, China, and South Africa (BRICS) economies from 1960 to 2022. By employing econometric analysis, the paper reveals a significant and positive influence of remittances and financial development on international reserves. In addition, we reveal a positive and significant association between remittances and financial development and international reserves in the long run. Further, a short-run relationship exists between financial development and international reserves. [ABSTRACT FROM AUTHOR]