Finance-Growth Nexus: Evidence from Indian Economy using Causality Co-Integration Test based on Error Correction Model

Inhaltsverzeichnis (Table of Contents)

• Background of Finance-Growth Nexus
• Trends of financial growth and economic development in India
• Finance-Growth Nexus: The Indian Experience
• Objective of the study
• Literature Review
• Data Description
• Theory, Empirical Model and Methodology
• Empirical model specification and estimation technique
• Stationarity Test
• Cointegration Test
• Vector Error Correction Estimate
• Granger Causality using Unrestricted VAR
• Results and Interpretations
• Stationarity Test
• Cointegration Test
• Vector Error Correction Estimate
• Granger Causality using Unrestricted VAR
• Conclusion
• Policy Implication
• Limitation and Scope of study

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis examines the relationship between financial development and economic growth in India. The author aims to investigate the causal relationship between these two variables using co-integration and error correction model (ECM) techniques. The study analyzes both pre- and post-reform periods in India, aiming to understand the evolution of the finance-growth nexus over time.

• Finance-Growth Nexus in India
• Impact of Financial Development on Economic Growth
• Causality Testing using Co-integration and ECM
• Analysis of Pre- and Post-Reform Periods
• Policy Implications for Financial Sector Development

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: This chapter provides a background on the theoretical framework of the finance-growth nexus and introduces the key concepts related to financial development and economic growth. It also discusses the significance of studying the relationship in the context of India.
• Chapter 2: This chapter examines the trends of financial growth and economic development in India. It analyzes the key indicators of financial development and economic growth and explores the historical evolution of these trends in India. The chapter also highlights the specific characteristics of the Indian financial sector.
• Chapter 3: This chapter presents a comprehensive literature review on the finance-growth nexus. It discusses different theoretical models and empirical studies that have explored the relationship between finance and growth. It critically analyzes the existing literature and identifies key findings and gaps in the research.
• Chapter 4: This chapter describes the data used in the study. It outlines the sources of data, the specific variables used, and the time period covered in the analysis. The chapter also explains the methodologies employed for data collection and processing.
• Chapter 5: This chapter presents the theoretical framework, empirical model, and methodologies employed in the study. It discusses the co-integration and error correction model (ECM) techniques used to analyze the causal relationship between finance and growth. The chapter also provides a detailed explanation of the stationarity test, co-integration test, and Granger causality test used in the analysis.
• Chapter 6: This chapter presents the results of the empirical analysis and interprets the findings. It discusses the results of the stationarity test, co-integration test, vector error correction estimate, and Granger causality test. It analyzes the direction and magnitude of the causal relationship between financial development and economic growth in India. The chapter also analyzes the results for both pre- and post-reform periods.

Schlüsselwörter (Keywords)

This study focuses on the finance-growth nexus in India, examining the causal relationship between financial development and economic growth using co-integration and error correction model (ECM) techniques. The study analyzes data from both pre- and post-reform periods in India. Key terms and concepts include financial development, economic growth, causality, co-integration, ECM, stationarity test, Granger causality, pre-reform, post-reform, and Indian economy.