Impact of financial factors on economic growth : Evidence from India

Lata, Ritika; Solanki, Umesh

doi:10.47974/JSMS-1197

Open Access Research Article

Impact of financial factors on economic growth : Evidence from India

^*Ritika LataCorresponding authorritika.lata94@gmail.comTAPMI School of BusinessManipal University, JaipurJaipur, Rajasthan, IndiaView full profile → , Umesh Solankiumesh.solanki@jaipur.manipal.eduTAPMI School of BusinessManipal University, JaipurJaipur, Rajasthan, IndiaView full profile →

* Corresponding author · click or hover a name for details

pp. 121–131Vol. 27Issue 1January 2024DOI: 10.47974/JSMS-1197XML

Received:: 08 Aug 2023
Published Online:: 27 Nov 2023
Article type:: Research Article
Language:: EN
Article no.:: JSMS-1197
Pages:: 121–131

Abstract

To investigate the effects of financial issues, specifically M3 and loans to the private sector, on India’s economic expansion from 1996 Q2 to 2020 Q4. The paper employs augmented dickey fuller test to verify stationarity, cointegration analysis and vector error correction model. Key result outcomes indicate that, whereas credit to the private sector and M3 have significant short term and prolonged negative affects on GDP, credit to the private sector has essential favorable short-term effects on GDP. Using financial institution parameters, this research investigates the implication of financial measures on the expansion of the economy of India. The majority of prior investigations had its origins in developed nations.

Keywords

Financial factors Economic growth Cointegration test Vector auto correction model

Subject Classifications

00Bxx00-xx

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