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dc.contributor.authorParamati, Sudharshan Reddy
dc.contributor.authorGupta, Rakesh
dc.date.accessioned2017-05-03T14:38:02Z
dc.date.available2017-05-03T14:38:02Z
dc.date.issued2011
dc.date.modified2012-03-28T22:53:17Z
dc.identifier.issn14502887
dc.identifier.urihttp://hdl.handle.net/10072/44055
dc.description.abstractThis study aims to investigate whether the stock market performance leads to economic growth or vice versa; study also examines short-run and long-run dynamics of the stock market. We use of monthly Index of Industrial Production (IIP) and quarterly Gross Domestic Production (GDP) data for the time span of April, 1996 to March, 2009. This provides rich data for the empirical analysis. We undertake; Unit root (ADF, PP and KPSS) tests, Granger Causality test, Engle-Granger Cointegration test and Error Correction Model. The monthly results of Granger causality test suggest that there is a bidirectional relationship between IIP and Stock prices (BSE and NSE) and quarterly results reveal that there is no relationship between GDP and BSE but in the case of NSE and GDP there is a unidirectional relationship and that runs from GDP to NSE. The Engle-Granger residual based cointegration test suggests that there is a long-run relationship between the stock market performance and economic growth. Similarly, the results of error correction model reveal that when the long-run equilibrium deviates then the economic growth adjusts to restore equilibrium by rectifying the disequilibrium. This study provides evidence in favor of 'demand following' hypothesis in the short-run. Main contribution of the study is in identifying the role of economic growth in stock market development.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent191221 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglish
dc.language.isoeng
dc.publisherEuroJournals
dc.publisher.placeUnited Kingdom
dc.publisher.urihttp://www.eurojournals.com/finance.htm
dc.publisher.urihttp://www.eurojournals.com/IRJFE_73_12.pdf
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom133
dc.relation.ispartofpageto149
dc.relation.ispartofissue73
dc.relation.ispartofjournalInternational Research Journal of Finance and Economics
dc.relation.ispartofvolume2011
dc.rights.retentionY
dc.subject.fieldofresearchEconomic Development and Growth
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchEconometrics
dc.subject.fieldofresearchBanking, Finance and Investment
dc.subject.fieldofresearchcode140202
dc.subject.fieldofresearchcode1402
dc.subject.fieldofresearchcode1403
dc.subject.fieldofresearchcode1502
dc.titleAn Empirical Analysis of Stock Market Performance and Economic Growth: Evidence from India
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.rights.copyright© 2011 EuroJournals Publishing, Inc. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
gro.date.issued2011
gro.hasfulltextFull Text
gro.griffith.authorGupta, Rakesh


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