ECTAP
 
HomeDespre ECTAEventsPolitica editorialaTrimite un articolParteneri / link-uri utileArchiveAbonamentContact
 

ISSN 1841-8678   (print)
ISSN 1844-0029   (online)

News

Archive ECTAP

Note: for the period 1994-2003 the archive of the magazine will not be available online

Supplements ECTAP

If you cannot open the pdf file you need Adobe Reader.
download Adobe Reader

Creative Commons License

Theoretical and Applied Economics
No. 3 / 2016 (608), Autumn

Growth-finance nexus: Empirical evidence from India

Tanzeem HASNAT
Department of Economics, Jamia Millia Islamia, New Delhi, India
Shahid ASHRAF
Department of Economics, Jamia Millia Islamia, New Delhi, India
Umer J. BANDAY
Department of Economics, Jamia Millia Islamia, New Delhi, India

Abstract. The relationship between financial development and economic growth has attracted considerable attention of policymakers and researchers alike. The present study aims to empirically examine the relationship between economic growth and financial development in the post-reform period, from 1992-1993 to 2014-2015. The period witnessed reforms towards financial liberalisation like deregulation of interest rates, lowering reserve requirements, removal of financial markets imperfections and the development of an efficient and sound financial sector. The indicators of financial development used in the study are Broad money to GDP ratio, Stock market capitalization to GDP ratio and Traded Value ratio. The study employs Johnson co-integration technique and finds long run relationship among the variables. Multivariate Granger causality test finds market capitalization and traded value ratio together granger cause GDP, and market capitalization and broad money together granger cause GDP. Also, the study finds causality running from GDP and traded value ratio to market capitalization. The results, therefore, indicate considerable interdependence among economic growth and financial development in the post reform period under study.

Keywords:

Download the full article:  

Contents

Open acces

ECTAP

Search

BOOKS

The Economicity. The Epistemic Landscape, Marin Dinu, 2016

Partners


ISSN 1841-8678 (ediția print) / ISSN 1844-0029 (ediția online)
© Copyright Asociația Generală a Economiștilor din România (AGER) / General Association of Economists From Romania  (GAER)
Redacția: 010702, București, Calea Griviței nr. 21, sector 1, E-mail: economia.ta@edeconomica.com

© 2006-2019 AGER