Department of Economics and Finance
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Item The Role of Globalization and Institutional Quality on Finance- Growth Nexus:Empirical Evidences from India(TA Pai Management Institute, 2016) Giri, Arun KumarThe 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.Item Dynamic Relations between Macroeconomic Variables and Indian Stock Price: An Application of ARDL Bounds Testing Approach(AESS, 2015) Giri, Arun Kumarhe purpose of the present study is to examine the dynamic long run and the short run relationship between stock price and a set of macroeconomic variables for Indian economy using monthly data from April 2004 to July 2014. The long run relationship is examined by implementing the ARDL bounds testing approach to co-integration. VECM method is used to testthe short and long run causality and Variance Decomposition (VDC) is also used to explore how much the forecast error variance of a conditional stock market volatility is explained by the innovations to each explanatory conditional macroeconomic variables. The results confirm a long run co-integrating relationship among the variables. Evidence suggests that the Index of Industrial Production, inflation and exchange rate influence stock prices positively, whereas, gold price influences the stock price negatively. The VECM result indicates that only long run causality running from all the variables used in the study to stock prices in India. The result of the variance decomposition shows that stock market development in India is mostly explained by its own shocks.Item The composition of public expenditure and economic growth in India: Evidence from auto regressive distributed lag approach(JER, 2016-08) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe 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 IndiaItem Fiscal Deficits and Stock Prices in India: Empirical Evidence(MDPI, 2015) Giri, Arun KumarThe study aims at examining how fiscal deficits affect the performance of the stock market in India by using annual data from 1988–2012. The study makes use of Ng-Perron unit root tests to check the non-stationarity property of the series; the Auto Regressive Distributed Lag (ARDL) bounds test and a Vector Error Correction Model (VECM) for testing both short and long run dynamic relationships. The variance decomposition (VDC) is used to predict the exogenous shocks of the variables. The findings of the bounds test reveal that the estimated equation and the series are co-integrated. The ARDL results suggest a long run negative relationship exists between budget deficit and stock prices and do not show any significant relationship in the short run. The VECM result shows that fiscal deficits influence the stock price only in the short run. The results of the Variance Decomposition show that stock price movement in the long run is mostly explained by shocks of fiscal deficits. The study implies that the government must adopt appropriate macroeconomic policies to reduce budget deficit, which will result in stock market growth and in turn will lead to the financial development of the country.Item Does female human capital contribute to economic growth in India?: an empirical investigation(Emerald, 2017-11) Giri, Arun KumarThe purpose of this paper is to examine the impact of female human capital on economic growth in the Indian economy during 1970-2014.Item Foreign aid, macroeconomic policies and economic growth nexus in India: An ARDL bounds testing approach(2016) Giri, Arun Kumar; Mohapatra, GeetilaxmiThe purpose of this paper is to examine the effectiveness of foreign aid on economic growth in Indian economy using annual data from 1970 to 2014. The cointegration test confirms a long run relationship between real GDP per capita and foreign aid for India. The study finds a positive and significant impact of foreign aid on economic growth in India both in long run and in short run. Our results provide strong evidence that effectiveness of foreign aid on economic growth is contingent on macroeconomic policy environment in India. The VECM results confirm short-run and long run unidirectional causality running from foreign aid, government expenditure and trade openness to economic growth in India. Further, the results of the variance decomposition approach indicate that economic growth in India mostly explained by foreign aid. Further, the impulse response function result indicates that there is positive response in economic growth due to shock stemming in foreign aid. The findings and the results are useful guidelines for major stakeholders, including donors and the government of recipient countries for designing framework for aid effectivenessItem The relationship between financial development indicators and human development in India(Emerald, 2014-11) Giri, Arun KumarThe purpose of this paper is to examine the relationship between financial development indicators and human development in India using annual data from 1980-2012.Item Financial development and economic growth: empirical evidence from India(Emerald, 2015-08) Giri, Arun KumarThe purpose of this paper is to examine the relationship between financial development and economic growth in India using annual data from 1982 to 2012.Item The Impact of Macroeconomic Indicators on Indian Stock Prices: An Empirical Analysis(De Gruyter, 2017-06) Giri, Arun KumarThe purpose of the present study is to examine the long run and the short run relationship between stock price and a set of macroeconomic variables for Indian economy using annual data from 1979 to 2014. The long run relationship is examined by implementing the ARDL bounds testing approach to co-integration. 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. The results confirm a long run relationship among the variables. Evidence suggests that Economic growth, inflation and exchange rate influence stock prices positively. However, crude oil price influences the stock price negatively. This implies that the increase in oil price induces inflationary expectation in the mind of investors and hence stock prices are adversely affected. The VECM result indicates that short run and long run unidirectional causality running from economic growth and FDI to stock prices in India. The result of the variance decomposition shows that stock market development in India is mostly explained by its own shocks. The Government can take steps to control the crude oil price in India and Investors’ confidence has to be gained by boosting the economic growth of the economy through appropriate policy tools.Item The impact of financial development, economic growth and energy consumption on environmental degradation: Evidence from India(Emerald, 2015-08) Giri, Arun Kumar; Mohapatra, Geetilaxmihe purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011