Financial Development, Growth and Stock Market Development: The Trilateral Analysis in India
The paper examines the long run relationship between financial development and growth in India in a trivariate framework by incorporating stock market development. It finds that stock market development has substantial impact on finance- growth nexus. While financial development and economic growth are bidirectional, economic growth and stock market development are unidirectional. The paper concludes that stock market development is an integral part economic growth, which is, in turn, associated with financial development in the Indian economy.
Volume (Year): 9 (2011)
Issue (Month): 1 ()
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- Luintel, Kul B. & Khan, Mosahid, 1999. "A quantitative reassessment of the finance-growth nexus: evidence from a multivariate VAR," Journal of Development Economics, Elsevier, vol. 60(2), pages 381-405, December.
- Guglielmo Maria Caporale & Peter G. A Howells & Alaa M. Soliman, 2004. "Stock Market Development And Economic Growth: The Causal Linkage," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(1), pages 33-50, June. Full references (including those not matched with items on IDEAS)
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