Financial sector development and economic growth in Indian states

Bhanumurthy, N. R.; Singh, Prakash

doi:10.1504/ijepee.2013.054472

Cited by 29 publications

(18 citation statements)

References 29 publications

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“…Higher deposits with the intermediaries means channelling of surplus funds to the deficit units of the economy hence, transforming deposits into loans and other advances (Naira, 2016). The results are in line with the earlier studies of Bhanumurty and Singh (2013) and Sehrawat and Giri (2015) which suggest a bidirectional causality and emphasis that economic growth has a critical role in financial development and that financial development leads to further development of economic growth of an economy. From the results of this relation it can be inferred that policy makers should emphasis on the measures which enhance the economic growth but they also focus on the development of banking system by considering the long term perspective of the mutual causality between the two which will ultimately benefit the economy as a whole.…”

Section: Panel Vector Error Correction Model (Vecm)supporting

confidence: 91%

Dynamics of Financial Development and Economic Growth: Panel Data Analysis for Selected Indian States

Sharma

Kumar

2018

DEM

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With the help of standard refined panel analysis techniques the present study analysed the dynamics of causal relationship between financial development and economic growth for selected Indian states. Mainly focusing on banking level indicators the present attempt measured the extent of financial development in the selected Indian states. Three major econometric techniques including panel unit root tests, cointegration tests and finally the panel error correction model have been implemented for identifying the relationship between variables. Firstly, the series was tested for cross-sectional independence and then checked for the presence of unit roots. The results of both first and second generation unit root indicated an integration of order one for all the variables and a long-run relationship between financial development and respective economic growth indicators was confirmed by the Pedorni's and Westerlund's cointegration tests. The results of the present study emphasized on the critical role of credit provided by banks in the process of long run economic growth across states. Apart from this the results of the study highlighted a very relevant fact that the Indian economy has a lot of scope in harvesting the less financially developed areas of the states which can run rapidly on the greeny path of dynamic and sharp long term sustainable economic growth.

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Section: Panel Vector Error Correction Model (Vecm)supporting

confidence: 91%

Dynamics of Financial Development and Economic Growth: Panel Data Analysis for Selected Indian States

Sharma

Kumar

2018

DEM

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“…The size of monetary aggregates captures many liquid liabilities of the financial system, which reflects financial deepening to provide positive financial services (King and Levine, ; Demetriades and Hussein, ; Deidda and Fattouh, ). The study has used the money multiplier as one of the indicators to measure financial development as an increase in the money multiplier reflects the broadening of the financial sector of an economy (see Bhavani and Bhanumurthy, ; Bhanumurthy and Singh, ). However, some studies use credit to the private sector as a proportion of GDP by arguing that monetary aggregates may not be a good proxy for financial development.…”

Section: Formulation Of Infrastructure and Financial Developmentmentioning

confidence: 99%

Analyzing the Dynamic Relationships between Physical Infrastructure, Financial Development and Economic Growth in India

Mohanty

Bhanumurthy

2019

Asian Economic Journal

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This paper investigates the dynamic relationships between physical infrastructure, financial development and economic growth in the case of India, using the autoregressive distributed lag and the Toda-Yamamoto causality approach for the period 1980 to 2016. A physical infrastructure index and a financial development index are constructed using the principal component analysis. The empirical results suggest that physical infrastructure has a positive effect on economic growth both in the long run and short run, whereas financial development, although significant, has a weak impact on economic growth. The causality test supports a bidirectional causal relationship between infrastructure development and economic growth, while it finds unidirectional causation running from economic growth to financial development. As India is aiming for higher growth for a sustained period, our results suggest that there is a need for government intervention in expanding the physical infrastructure and this, in turn, could lead to economic growth as well as financial sector development.

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“…The topic of development of international business is very popular in the modern scientific environment. The notion, essemce, and specifics of functioning of entrepreneurship in world markets are studied in a lot of works of modern scholars and expertse.g., (Bhanumurthy and Singh 2013;Bozkurt et al 2015;Teekasap 2014;Caporale and Spagnolo 2012;Gehringer 2014;Jahfer and Inoue 2014;Md. Al and Sohag 2015).…”

Section: Main Textmentioning

confidence: 99%

Sustainable development of global entrepreneurship: infrastructure and perspectives

2018

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Development of the modern global entrepreneurship is one of the most perspective and promising means of overcoming the consequences of the global economic crisis, as well as prevention of future crises of economic systems, as it ensures full level of optimization of production and distribution processes. The purpose of the article is to determine perspectives of sustainable development of the global entrepreneurship. For determining the level of sustainability of development of the modern global entrepreneurship, the authors use the methods of statistical analysis of time rows (method of horizontal and trend analysis). The authors perform a complex analysis of dynamics of development of global companies and performed evaluation of their sustainability. Also, the necessity for changing the model of managing the development of modern global entrepreneurship for increasing its sustainability is substantiated. As a result, it is concluded that modern global entrepreneurship is developing in the unstable way, and practical recommendations are offered for solving this problem. A perspective model of sustainable development of the modern global entrepreneurship is developed and presented. A certain limitation of the results of the performed research is the framework character of the offered recommendations.

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Financial sector development and economic growth in Indian states

Cited by 29 publications

References 29 publications

Dynamics of Financial Development and Economic Growth: Panel Data Analysis for Selected Indian States

Dynamics of Financial Development and Economic Growth: Panel Data Analysis for Selected Indian States

Analyzing the Dynamic Relationships between Physical Infrastructure, Financial Development and Economic Growth in India

Sustainable development of global entrepreneurship: infrastructure and perspectives

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