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Title: Financial development inflation and economic growth in India issues and evidences
Researcher: Sehrawat, Madhu
Guide(s): Giri, A. K.
Keywords: Financial development, Economic Growth
University: Birla Institute of Technology and Science
Completed Date: 
Abstract: The rate of real GDP growth is considered to be an important macroeconomic indicator for newlineevaluating economic performance of any economy. Thus, it is necessary to investigate the main newlinedrivers of economic growth to improve the economic performance of any country. Further, the newlinetheoretical literature confirms that the level of financial development is pivot to economic newlinegrowth (Levine, 1997; Graff, 2003). The relationship between financial development and newlineeconomic growth has been the focus of an immense body of theoretical and empirical research newlinesince the 19th century. The debate over the decades has been whether the financial sector newlineactually leads the economic growth or the vice versa. To date, this view is not conclusive and the newlinedebate on the relationship between financial development and economic growth is still on-going. newlineThe empirical evidence suggests that the relationship between financial development and newlineeconomic growth is sensitive to the chosen proxy for financial development (Adu et al., 2013). newlineThe current study investigated the relationship, both at the national (Indian economy: time series newlinedata over the time period 1982-2013) and sub national level (28 states: panel data over the time newlineperiod 1993-2013) for Indian economy. Both the studies confirm a long run relationship in newlinefinancial development and economic growth for Indian economy. Both the studies support the newlinesupply-leading hypothesis and highlight the importance of financial development in economic newlinegrowth. It is also found that the growth effect of financial development is sensitive to the choice newlineof proxy used to measure financial development. The empirical findings indicate that the Indian newlinebank-centric financial sector has the potential for economic growth through credit transmission. newlineThe present study recommends appropriate reforms in the financial institutions to attainsustainable economic growth. The findings will be useful for India s policy makers inordertomaintaintheparallelexpansion of financial development and economic growth. newlineAnother i
Pagination: xiii
Appears in Departments:Economics & Finance

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