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Financial Development, Growth and Stock Market Development: The Trilateral Analysis in India

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  • Rudra P. Pradhan

Abstract

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.

Suggested Citation

  • Rudra P. Pradhan, 2011. "Financial Development, Growth and Stock Market Development: The Trilateral Analysis in India," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(1), pages 134-145.
    • Handle: RePEc:jqe:jqenew:v:9:y:2011:i:1:p:134-145
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    References listed on IDEAS

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    Cited by:

    1. Nyasha, Sheilla & Odhiambo, Nicholas M, 2019. "Does remittance inflow granger-cause economic growth in South Africa? A dynamic multivariate causality test," Working Papers 25743, University of South Africa, Department of Economics.
    2. repec:mbr:jmonec:v:8:y:2013:i:3:p:151-166 is not listed on IDEAS
    3. Rudra P. PRADHAN & Mak B. ARVIN & Bele SAMADHAN & Shilpa TANEJA, 2013. "The Impact of Stock Market Development on Inflation and Economic Growth of 16 Asian Countries: A Panel VAR Approach," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 203-218.
    4. Prity Sinha & Brinda Viswanathan & Badri Narayanan & David McMillan, 2015. "Financial market and growth: Evidence from post-reforms India," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1057417-105, December.
    5. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries," Technology in Society, Elsevier, vol. 42(C), pages 135-149.
    6. Sheilla Nyasha & Yvonne Gwenhure & Nicholas M Odhiambo, 2018. "Energy consumption and economic growth in Ethiopia: A dynamic causal linkage," Energy & Environment, , vol. 29(8), pages 1393-1412, December.
    7. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar, 2015. "Causal nexus between economic growth, inflation, and stock market development: The case of OECD countries," Global Finance Journal, Elsevier, vol. 27(C), pages 98-111.
    8. Rudra P. Pradhan & Yasuyuki Nishigaki & John H. Hall, 2017. "The multivariate dynamic causal relations between financial depth, inflation, and economic growth," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 54(1), pages 63-93, June.
    9. Sheilla Nyasha & Yvonne Gwenhure & Nicholas M. Odhiambo, 2017. "The Dynamic Causal Linkage Between Financial Development And Economic Growth: Empirical Evidence From Ethiopia," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(1), pages 73-102.
    10. Sheilla Nyasha Author-Name: Yvonne Gwenhure & Nicholas M. Odhiambo, 2017. "Poverty and Economic Growth in Ethiopia: A Multivariate Causal Linkage," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 343-359, January-M.

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