Theoretical and Applied Economics
No. 2 / 2025 (643), Summer
Understanding the impact of artificial intelligence on the stock market development in BRICS nations: a panel ARDL method
The Gandhigram Rural Institute (DTBU), India
Pradeesh K.
Government College, Chittur, India
Mohandas V K
Government Victoria College, India
K. MANIKANDAN
The Gandhigram Rural Institute (DTBU), India
Abstract. The stock market is considered an essential marketplace that unites savers and borrowers, generating liquidity that enables governments, businesses, and individuals to trade shares, which is crucial for economic growth. With the integration of artificial intelligence in the financial market, there have been considerable changes in trade strategies, risk management, and market forecasting. Thus, the present study examines the impact of artificial intelligence (AI) on the stock market (SM) along with other factors such as trade (tr), foreign investment (FDI), exchange rate (Ex), and inflation (In) from 2000 to 2022 in BRICS nations. BRICS countries were particularly selected due to the high potential for investment. According to the results of the first- and second-generation panel unit root tests, there are no unit root issues, and the factors have a mixed order of integration. The long-term cointegration of the factors is validated by the panel cointegration test. The results show that artificial intelligence, FDI, and trade have a positive effect on the stock market, whereas exchange rate and inflation have a negative effect. While in the short run, all factors except trade have a positive impact on SM in BRICS nations. These panel ARDL results were further validated by employing Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG). Furthermore, employing the Dumitrescu-Hurlin causality test, a bidirectional causal relationship was found between the stock market and FDI and the stock market and trade. A unidirectional causality was found between AI and the stock market. The findings suggested that policymakers should concentrate more on investment policies and integrating AI techniques for the development of the stock market.
Contents
A bibliometric analysis on inequalities in higher education in the age of educational expansion
Trending over thinking – quick fame, quiet genius: the bad habits of social media
Understanding the impact of artificial intelligence on the stock market development in BRICS nations: a panel ARDL method
A comparative analysis of development in SAARC countries in the relation of sustainable development – taxonomic analysis
Complementary relationship between foreign direct investment, financial development threshold and economic growth: evidence from Sub-Saharan Africa
Artificial intelligence as a disruptive force in economics: transformations, challenges, and future prospects
The main drivers of labour cost dynamics in Central and Eastern European countries
Government debt service, interest rates, and macroeconomic stability: a conceptual approach
Shaping health systems through strategy and economics: a global bibliometric exploration of policy pathways
Energy and economics: an empirical study on the global economic impact of energy crisis
Monetary policy, inflation, and exchange rate dynamics: evidence from the Turkish economy (2001-2023)
The impact of public spending on the inflation rate in Algeria: an econometric study for the period 2000-2023
Analyze the environmental sustainability factors in India: the role of ecological footprint and CO2 emission
Implications of monetary and fiscal policy shocks: evidence from an Eastern European economy
From e-government to efficient transport: investigating Romania’s digital leverage in logistics
Impact of ICT adoption on the food security of agricultural households in Burkina Faso
Greek tax policy and macroeconomic framework after the political transition, a systematic approach
Is Balance of Payments a monetary phenomenon: doctrinal aspects and empirical evidence from India
Neuroeconomics in the Age of AI: how machine learning alters human decision-making at the neural level
Analysis of the relationship between the optimal level of public spending and economic growth Evidence and experimental study on Algeria