Relationship between Financial Deepening and Recent Economic Growth in India

Dr.A. Muthukrishnan

This paper analyses the inception and co integration effect of financial deepening on economic growth in India over the period of 30 years from 1989 to 2019. The results reveals that a inception and co integration effect exists in relationship between financial deepening and economic growth. In short- run, Economic growth has a significant effect on financial deepening in the upper growth to Government. This implies that economic growth can be identified by financial deepening. This paper highlights the one-way causal relationship from the economic growth to financial deepening which is to be analyzed when the amount of deposits and supply money (S2) are used as proxies of financial deepening in India.

Volume 11 | 11-Special Issue

Pages: 694-699

DOI: 10.5373/JARDCS/V11SP11/20193086