Department of Economics and Finance

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Author: search.filters.author.Giri, Arun KumarSubject: search.filters.subject.Economic Growth

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Now showing 1 - 10 of 24
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    The Role of Globalization and Institutional Quality on Finance- Growth Nexus:Empirical Evidences from India
    (TA Pai Management Institute, 2016) Giri, Arun Kumar
    The present study explores the impact of globalization and institutional quality on financegrowth nexus within the multivariate framework using time series data over the period 1982-2014. The stationary properties of the variables are checked by employing Saikkonen and Lütkepohl (2002) unit root test. The long run relationship is investigated by applying the ARDL bounds testing approach to co-integration and error correction method (ECM) is used to examine the short run dynamics among the variables. The empirical results of long run estimates of ARDL suggest that financial development and Globalization contributes to economic growth. These findings are supported by short run estimates. It is also found that institutional Quality does affect economic growth positively; this is in support of sustainable growth. The findings of VECM based causality suggest that there is unidirectional causality running from financial development and globalization to economic growth. It is also found that the unidirectional causality is running from coefficient of institutional quality to economic growth .The results of variance decomposition suggest that the broad money supply plays the most important role to define economic growth in India.
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    Do Institutional Quality and Trade Openness Influence Economic Growth? An Empirical Evidence from India
    (Springer, 2022-03) Giri, Arun Kumar; Mohapatra, Geetilaxmi
    The study empirically examines the impact of trade openness and institutional quality on economic growth in India for the period 1990–2019. The study uses export plus imports as a ratio of GDP and composite governance indicators to measure trade openness and institutional quality, respectively. GDP per capita is used as the proxy for economic growth along with financial development, domestic capital, exchange rate, and inflation as other conventional determinants of economic growth. Autoregressive distributed lag (ARDL) co-integration approach along with the first-generation unit root tests is used in the present study to test empirical relationships. The results reveal that both trade openness and institutional quality exert a significant and positive impact on economic growth in both the long and short runs. Further, the interaction of trade openness and institutional quality is shown to have a significant impact on economic growth as well. The estimates also confirm that domestic capital and financial development have a significant positive influence on the economic growth of the country. The results further indicate that the exchange rate has a significant negative impact on economic growth in both long run and short run.
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    What Shapes Economic Growth in BRICS? Exploring the Role of Institutional Quality and Trade Openness
    (Wiley, 2023-01) Giri, Arun Kumar; Kumar, Arya
    Prior research has identified outward-oriented policies as a far superior approach to achieving economic growth. Whilst trade openness determines economic growth in the short run, institutional quality is critical to long-term viability. However, the direct and indirect effects of institutions have been understudied, particularly for the Brazil, Russia, India, China and South Africa. This study addresses this issue by estimating long-run and short-run elasticities using the system GMM and pooled mean group models and identifying its country-specific impact using the fully modified ordinary least square model. According to the findings, trade and institutions are only short-run complements of economic growth. In the long run, however, the lack of good governance limits the positive impact of trade openness.
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    Macroeconomic Variables and Stock Market Development in India: An Application of ARDL Bounds Testing Approach
    (The Empirical Economics Letters, 2015-07) Giri, Arun Kumar
    This paper examines the relationship between selected macroeconomic variables and stock market development in India using quarterly data from 1996:Q1 to 2012:Q3. Ng-Perron unit root test is utilized to check the order of integration of the variables. The long-run relationship is examined by implementing the ARDL bounds testing approach. VECM method is used to test the short and long-run causality, and variance decomposition is used to predict long-run exogenous shocks of the variables. Results confirm a long-run relationship among the variables. Evidence suggests that economic growth, FIIs and Trade openness in India influence the stock market capitalization positively. The VECM result indicates short-run unidirectional causality running from trade openness to stock market development. Result of variance decomposition shows that stock market development is mostly explained by trade openness. The Government can take steps to encourage FDI and trade openness to facilitate investment in stock markets, which will lead to increased economic activity
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    Impact of Inflation on Financial Development: Evidence from India
    (IPE, 2016-09) Giri, Arun Kumar
    Financial development is considered an important driver of economic growth, but high level of inflation impedes the ability of the financial sector to allocate resources effectively. This paper examines the impact of inflation on financial development in Indian economy for the period of 1970-2012. To test for stationarity, the study uses Ng- Perron unit root tests. The long- and short-run dynamics are obtained by using auto-regressive distributed lag (ARDL) approach to co-integration and Granger causality is used to examine the direction of the causal link among the variables. The empirical evidence indicates that there is a significant, and negative relationship between inflation and both banking sector development indicator both in the short and long run. The empirical findings reveal that high trends of inflation impede the performance of financial markets. The degree of trade openness promotes development of the financial sector.
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    Fiscal Policy, Economic Growth and Income Inequality: A Case of Indian Economy
    (The Romanian Economic Journal, 2017) Giri, Arun Kumar; Mohapatra, Geetilaxmi
    Through this study, we try to evaluate the effects that the direct and indirect taxation and the subsidies provided by the Government have on income inequality. We use Gini coefficient as a measure of inequality and use annual data for Indian economy for years 1982-2015 and employ an ARDL-based bounds test approach for testing co-integration. We ascertain the stationarity properties for all the series, separately using the ADF test, the DF-GLS test and the KPSS test. We estimate the long-run and short-run coefficients and find that a long-run negative relationship exists between Gini coefficient and subsidy-related expenditure. The long-run coefficients of direct and indirect taxation terms are positive but are significant only at 10%. The short-run coefficients obtained from ECM show that a negative relationship exists between expenditure on subsidies and Gini coefficient. In short run, direct tax seems to have an insignificant positive coefficient while indirect tax seems to have a significant unbalancing effect. We employ the Granger causality tests to confirm direction of causality and find that there runs a unidirectional causality from direct tax, indirect tax and subsidy to Gini coefficient, while any causality from Gini to any series is largely insignificant. The results imply that the government should use the calculated hybrid of tools like direct and indirect taxation and subsidies to have an equalizing impact on the economy. Moreover, the significant causal relationship from subsidies to Gini opens up an opportunity for the government to improve the income distribution using targeted subsidies, for example the Aadhaar-linked Direct Transfer Benefits etc.
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    Technological development, financial development, and economic growth in India: Is there a non-linear and asymmetric relationship?
    (Emerald, 2021-06) Giri, Arun Kumar; Mohapatra, Geetilaxmi; Debata, Byomakesh
    The main purpose of the present research is to analyze the relationship between technological development, financial development and economic growth in India in a non-linear and asymmetric framework.
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    The composition of public expenditure and economic growth in India: Evidence from auto regressive distributed lag approach
    (JER, 2016-08) Giri, Arun Kumar; Mohapatra, Geetilaxmi
    The present study examines the role of various components of pub- lic expenditures on economic growth in India during the period from 1980 to 2013. The study used ARDL approach to examine the long run and the short run dynamic relationship. The VECM based Granger causality test is utilized to check the direction of causality. The results reveal that there exists a long run cointegrat- ing relationship between economic growth, developmental expen- diture, fiscal deficit and gross private investment. The ARDL es- timates show significant positive long run impact of development expenditure on economic growth. However, the non development expenditure and revenue expenditure reveal insignificant impact on economic growth. The causality test estimates indicate short and long run unidirectional causality running from development expen- diture and fiscal deficit to economic growth in India
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    Beyond Growth: Does Tourism Promote Human Development in India? Evidence from Time Series Analysis
    (Korea Science, 2020) Giri, Arun Kumar
    The present study aims to investigate the impact of tourism growth on human development in Indian economy. For this purpose, the study uses annual data from 1980 to 2018 and utilizes two proxies for tourism growth - tourism receipt and tourist arrivals - and uses human development index calculated by UNDP. The study uses control variables such as government expenditure and trade openness. The study employs auto regressive distributed lag (ARDL) approach to investigate the cointegrating relationship among the variables in the model. Further, the study also explores the causal nexus between tourism sector and human development by using the Toda-Yamamoto Granger non-causality test. The result of ARDL bounds test reveals the existence of cointegrating relationship between human development indicators, government expenditure, trade openness, and tourism sector growth. The cointegating coefficient confirms a positive and significant relationship between tourism sector growth and human development in India. The causality result suggests that economic growth and tourism have a positive impact while trade openness has a negative impact on human development in India. The major findings of this study suggest that tourism plays an important role in the socio-economic development of Indian economy in recent years and the country must develop this sector to achieve sustainable development.
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    ICT diffusion, financial development, and economic growth: Panel evidence from SAARC countries
    (Wiley, 2020-12) Giri, Arun Kumar
    This study examines the interrelation of ICT diffusion and financial development with economic growth in SAARC economies, by employing data for the time period 2000–2017. The empirical analysis is carried out using granger causality and cointegration techniques. First generation panel unit root tests namely LLC, IPS, ADF, and PP test were employed for this purpose. All the variables were found to be integrated of order one at first difference. Pedroni's cointegration test along with Kao's residual-based cointegration test was used which reveals the presence of long-run relationship among the variables. Further, cointegration coefficients are computed with the help of fully modified ordinary least squares and dynamic ordinary least squares method. While financial development, ICT diffusion, and trade openness were found to increase the growth rate, inflation exhibited negative impact on growth. Both short-run and long-run causality were examined using panel granger causality test which revealed unidirectional causality running from ICT diffusion and financial sector development to economic growth. However, the result of causation between financial sector development and the ICT diffusion was statistically insignificant.