Theoretical and Applied Economics
No. 1 / 2015 (602), Spring
Measuring financial development in India: A PCA approach
School of Humanities and Social Sciences, Indian Institute of Technology Indore, Madhya Pradesh, India
Abstract. Financial development is a multidimensional concept and its measurement is thorny for the researchers. A good measurement of financial development is decisive in evaluating the progress of financial sector development and understanding the corresponding impact on economic growth and poverty reduction. The study makes use of the PCA (Principal components analysis) to construct a financial depth index (IFD) that serves as a proxy variable of financial development position of the country. This paper used Indian time series data covering a period from 1980 to 2011(Index-1) and 1990-2011(Index-2) for measurement of two separate financial development index. This study gives insight for understanding various financial sector proxies as well as to enhance the knowledge of financial position of the country. The proposed index is easy to compute and comparable across countries.
Keywords: Financial development, IFD, PCA, multidimensional, thorny, decisive.
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Contents
- The credit impact on the economic growth
Daniel ARMEANU
Carmen PASCAL
Dorina POANTA
Cristina Andreea DOIA
- Predicting balance of payments crises
for some emerging economies
Archana KULKARNI
Bandi KAMAIAH
- Creativity and innovation – Sources of competitive advantage in
the value chain of tourism enterprises
Nicolae TEODORESCU
Aurelia-Felicia STĂNCIOIU
Anamaria Sidonia RĂVAR
Andreea BOTOȘ
- How to escape the middle income trap:
international evidence
from a binary dependent variable model
Can Tansel TUĞCU
- Environmental Kuznets curve. Evidence from Romania
Dorin JULA
Corina-Ionela DUMITRESCU
Ioana-Ruxandra LIE
Răzvan-Mihai DOBRESCU
- Effects of economic crisis on the distribution
of earnings from Romania
Amalia CRISTESCU
Dorel AILENEI
- An approach of social policy in terms
of macro-stabilisation function
Anca-Maria GHERMAN
George-Marian ȘTEFAN
- Economy recovery risks which Romanian companies
has to cope with
Daniela Livia TRAȘCĂ
- The measurement of fiscal behavior in some European
countries: Panel data perspective
Süleyman BOLAT
Aviral Kumar TIWARI
- Romanian municipal bond market at Bucharest Stock
Exchange: further investigations
Cornelia POP
Maria-Andrada GEORGESCU
- Inequality and economic growth:
theoretical and operational approach
Ana ANDREI
Liliana CRĂCIUN
- Measuring financial development in India:
A PCA approach
Sanjaya Kumar LENKA
- The role of rating agencies
in international financial market
Emilian-Constantin MIRICESCU
- Socioeconomic development index ranking
calculations of cities with fuzzy clustering method:
case of Turkey
Necati Alp ERİLLİ
- Fiscal transparency in the European Union
Alexandra ADAM
- Accelerating the development of learning organizations: Shifting
paradigms from current practice to human performance
improvement
John B. LAZĂR
Daniela ROBU
- Transferring business intelligence
and big data analysis from corporations
to governments as a hybrid leading indicator
Dumitru-Alexandru BODISLAV
- The impact of cultural and educational accumulations
on entrepreneurial behaviour.
Main issues encountered in theoretical approaches
Anca-Teodora ŞERBAN-OPRESCU (OPRESCU)
Ştefania-Cristina CUREA (NEAGU)
- Models for evaluating financial crisis – what went wrong
for developed and emerging economies?
Smaranda CIMPOERU
- Impact of financial crisis on the decision making process for
insurance consumers
Laura Elly NAGHI
Mihaela COVRIG
Adrian FEDEROVICI
- Beyond the implementation of a dynamic stochastic general
equilibrium model
Oana Simona HUDEA (CARAMAN)
