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An Econometric Analysis of Impact of Public Issue on Economic Development in India during 1989-2009


  • Das, Tapas
  • Das, Seshanwita


This paper examines the empirical association between public issue and economic development (GDP) during the period 1989-2009. With help of log-lin regression model, we found that public issue had a positive significant impact on India’s economic development during this period, which survives almost all diagnostic tests of Classical Linear Regression Model. But, the relationship between public issue and economic development during this period, though had drastically undergone a structural change after 1997 South-east Asian Crisis, evidenced by residuals of recursive least squares, CUSUM test, CUSUMSQ test and Chow’s Predictive Failure test, but had remained stable after 2007 Subprime Crisis.

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  • Das, Tapas & Das, Seshanwita, 2012. "An Econometric Analysis of Impact of Public Issue on Economic Development in India during 1989-2009," MPRA Paper 53066, University Library of Munich, Germany, revised Sep 2012.
  • Handle: RePEc:pra:mprapa:53066

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    References listed on IDEAS

    1. Greenwood, Jeremy & Jovanovic, Boyan, 1990. "Financial Development, Growth, and the Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1076-1107, October.
    2. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 717-737.
    3. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series,in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.), Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084 Central Bank of Chile.
    4. Sarkar, Prabirjit, 2006. "Stock Market Development, Capital Accumulation and Growth in India since 1950," MPRA Paper 5050, University Library of Munich, Germany.
    5. Capasso, Salvatore, 2006. "Stock Market Development and Economic Growth," WIDER Working Paper Series 102, World Institute for Development Economic Research (UNU-WIDER).
    6. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    7. Pagano, Marco, 1993. "Financial markets and growth: An overview," European Economic Review, Elsevier, vol. 37(2-3), pages 613-622, April.
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    More about this item


    Public Issue; Economic Development; Econometric Analysis;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage


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