International Financial Integration and Economic Growth in India: An Empirical Investigation
This study endeavors to estimate relationship between international financial integration and economic growth in India during 1981-2011. Apart from direct impact of international financial integration on growth, indirect impact (via financial development) has also been studied empirically. Models...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ala-Too International University
2015-11-01
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| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | http://www.ejbe.org/EJBE2015Vol08No16p121MAHAJAN-VERMA.pdf |
| Summary: | This study endeavors to estimate relationship between international financial
integration and economic growth in India during 1981-2011. Apart from direct
impact of international financial integration on growth, indirect impact (via
financial development) has also been studied empirically. Models of co-integration
and Vector Error Correction Model (VECM) have been applied to examine the
relationships. The study observes that international financial integration affects the
growth of the economy positively; and change in economic growth due to it through
financial development is approximately 8.63 percent. The study also suggests that
the structural reforms that took place in India in early nineties did not affect the
existing relationship of global financial integration and economic growth
significantly. |
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| ISSN: | 1694-5948 1694-5972 |