Financial Infrastructure and Economic Performance ? Causality-Cointegration using Unrestricted VECM

dc.contributor.author	Dr. Manasvi M. Kamat
dc.contributor.author	Dr. Manoj Subhash Kamat
dc.date.accessioned	2025-03-01T04:23:11Z
dc.date.available	2025-03-01T04:23:11Z
dc.date.issued	2025-03-01
dc.description.abstract	The nexus between stock market activity growth and financial intermediary development within the economic activity for India is investigated over the postliberalization period ranging 1993-2011 using Unrestricted Vector Auto Regression (VAR) based on Error Correction Model (ECM). Both in the short term and the long term models we illustrate the relationship of the time-series and the causalitycointegration properties in its relations. The coherent picture from Granger-causality test based on Vector Error Correction Model (VECM) reveals that in the long run stock market development granger-causes financial intermediation growth. Our findings suggest that the evolution of the stock market tends to, or is more likely to stimulate and promote economic growth when monetary authorities adopt liberalized investment and openness policies, improve the size of the market and de-regulate the stock market. The financial market intermediation development indicators have a highly positive causation coefficient with the stock market activity implying that they have developed together in the Indian economy.
dc.identifier.uri	http://mescollege.ndl.gov.in/handle/123456789/56
dc.title	Financial Infrastructure and Economic Performance ? Causality-Cointegration using Unrestricted VECM

Now showing 1 - 1 of 1

Name:: Financial-Intermediation-and-Stock-Market-Activity-Growth-A-Causality-Cointegration-Approach.pdf
Size:: 1003.71 KB
Format:: Adobe Portable Document Format

Now showing 1 - 1 of 1