Does Financial Development Cause Economic Growth? The Case of India
Citations
233 citations
Cites background from "Does Financial Development Cause Ec..."
...It measures the overall size of the financial system but may not accurately reflect the efficiency of the banking sector (Demetriades and Hussein, 1996)....
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92 citations
Cites methods from "Does Financial Development Cause Ec..."
...This hypothesis has received support from numerous theoretical and empirical studies including Patrick (1966), Demetriades and Hussein (1996), Luintel and Khan (1999), Greenwood and Smith (1997), Al-Yousif (2002) and Calderón and Liu (2003), among others....
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84 citations
Cites background from "Does Financial Development Cause Ec..."
...…and increases poverty level in a country; and studies worldwide have shown that low economic development and high poverty in a country is due to that country’s inability to develop her financial sector (Chakraborty, 2008; Iganiga, 2008; Stephen & Wilton, 2006; William & Thawatchai, 2008)....
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...Such distresses often hinder economic development and increases poverty level in a country; and studies worldwide have shown that low economic development and high poverty in a country is due to that country’s inability to develop her financial sector (Chakraborty, 2008; Iganiga, 2008; Stephen & Wilton, 2006; William & Thawatchai, 2008)....
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66 citations
Cites background or methods from "Does Financial Development Cause Ec..."
...For a comprehensive review of empirical literature on financial development and economic growth see Chakraborty (2008). 2. It may be noted that equation (1) would represent an endogenous growth model, subject to the condition of increasing return to capital which implies α + β = 1. We have tested this hypothesis by estimating equation (3) with OLS, considering both the quarterly data and annual data over the period 1993 to 2005. In both the cases the hypothesis of α + β = 1 is rejected against the hypothesis of α + β < 1. 3. For application of similar interpolation method, see Granville and Mallick (2003). For getting quarterly series from annual series they applied an interpolation method in which the new estimated quarterly series is supposed to be consistent with other quarterly series in the model. For this exercise, they first searched for a similar quarterly series and assumed that the quarterly movements of both the series were the same. 4. Zhu et al. (2004) control for outliers in the data set used by Levine and Zervos (1998) by using nine alternative specification show that the effect of stock market turnover on economic growth is not significant, which contrasts the findings of Levine and Zervos (1998). 5. Relating stock and credit market expansion with economic growth in five emerging markets, namely, India, South Korea, Chile, Mexico and Taiwan, Spyrou and Kassimatis (2001) observe that equity markets have a role to play in Chile and Mexico. On the other hand, in these two countries banking crises in the 1980s and 1990s resulted in a negative relation between economic growth and credit market. Development of the stock market in Chile and Mexico since the second half of the 1980s was also noted by Demirguc-Kunt and Levine (2001), where they identified these two countries among others as market-based economies on the basis of a structure index....
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...For a comprehensive review of empirical literature on financial development and economic growth see Chakraborty (2008). 2. It may be noted that equation (1) would represent an endogenous growth model, subject to the condition of increasing return to capital which implies α + β = 1. We have tested this hypothesis by estimating equation (3) with OLS, considering both the quarterly data and annual data over the period 1993 to 2005. In both the cases the hypothesis of α + β = 1 is rejected against the hypothesis of α + β < 1. 3. For application of similar interpolation method, see Granville and Mallick (2003). For getting quarterly series from annual series they applied an interpolation method in which the new estimated quarterly series is supposed to be consistent with other quarterly series in the model. For this exercise, they first searched for a similar quarterly series and assumed that the quarterly movements of both the series were the same. 4. Zhu et al. (2004) control for outliers in the data set used by Levine and Zervos (1998) by using nine alternative specification show that the effect of stock market turnover on economic growth is not significant, which contrasts the findings of Levine and Zervos (1998). 5. Relating stock and credit market expansion with economic growth in five emerging markets, namely, India, South Korea, Chile, Mexico and Taiwan, Spyrou and Kassimatis (2001) observe that equity markets have a role to play in Chile and Mexico....
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...For a comprehensive review of empirical literature on financial development and economic growth see Chakraborty (2008)....
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...For a comprehensive review of empirical literature on financial development and economic growth see Chakraborty (2008). 2. It may be noted that equation (1) would represent an endogenous growth model, subject to the condition of increasing return to capital which implies α + β = 1. We have tested this hypothesis by estimating equation (3) with OLS, considering both the quarterly data and annual data over the period 1993 to 2005. In both the cases the hypothesis of α + β = 1 is rejected against the hypothesis of α + β < 1. 3. For application of similar interpolation method, see Granville and Mallick (2003). For getting quarterly series from annual series they applied an interpolation method in which the new estimated quarterly series is supposed to be consistent with other quarterly series in the model. For this exercise, they first searched for a similar quarterly series and assumed that the quarterly movements of both the series were the same. 4. Zhu et al. (2004) control for outliers in the data set used by Levine and Zervos (1998) by using nine alternative specification show that the effect of stock market turnover on economic growth is not significant, which contrasts the findings of Levine and Zervos (1998)....
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...For a comprehensive review of empirical literature on financial development and economic growth see Chakraborty (2008). 2....
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References
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"Does Financial Development Cause Ec..." refers background in this paper
...Several studies show that it is the bank-based financial structure that spurs economic growth (Boyd and Prescott 1986; King and Levine 1993)....
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7,554 citations
"Does Financial Development Cause Ec..." refers background in this paper
...Schumpeter (1912), in his effort to analyze the importance of technological innovation in long-run economic growth, emphasized the crucial role that the banking system would play in facilitating investment in innovation and productive investment by the entrepreneur....
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3,399 citations