Financial Market Structure and its Impact on Economic Growth
The process of economic growth is complex and depends on various factors. Macroeconomics places an important role on capital formation, i.e. physical investments. The process also involves progress in human capital, technology and knowledge. It also requires a stable regulatory and financial syste...
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| Format: | Article |
| Language: | English |
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Srusti Academy of Management
2015-12-01
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| Series: | Srusti Management Review |
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| Online Access: | http://www.srustimanagementreview.ac.in/paperfile/913785504_Financial%20Market%20Structure%20and%20its%20Impact%20on%20Economic%20Growth-Prof.%20Dhiren%20Jotwani-Vol%20-%20VIII%20%20Issue%20II%20%20Jul%20-%20Dec%202015.pdf |
| _version_ | 1818353639489536000 |
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| author | Prof. Dhiren Jotwani |
| author_facet | Prof. Dhiren Jotwani |
| author_sort | Prof. Dhiren Jotwani |
| collection | DOAJ |
| description | The process of economic growth is complex and depends on various factors. Macroeconomics places an important
role on capital formation, i.e. physical investments. The process also involves progress in human capital, technology
and knowledge. It also requires a stable regulatory and financial system in the country. The financial system acts as
the main catalyst in the process of channelling of funds from surplus to deficit units. The fact that there is a
relationship between financial development and growth is very highly debated. The broad consensus is that finance
acts as a crucial channel in the process. An area of inquiry lies in the question of whether the structure of the
financial system has any effect on the overall economic growth process. This involves the mix of banks and stock
markets in the economy. Therefore, the basic question that this paper will attempt to answer is: does having a bankbased or market-based financial system matter for economic growth? The approach will involve basic causality
tests using time-series data for the Indian economy |
| first_indexed | 2024-12-13T19:12:44Z |
| format | Article |
| id | doaj.art-9bcb0708c28e40af98a0ac4382f710b8 |
| institution | Directory Open Access Journal |
| issn | 0974-4274 2582-1148 |
| language | English |
| last_indexed | 2024-12-13T19:12:44Z |
| publishDate | 2015-12-01 |
| publisher | Srusti Academy of Management |
| record_format | Article |
| series | Srusti Management Review |
| spelling | doaj.art-9bcb0708c28e40af98a0ac4382f710b82022-12-21T23:34:22ZengSrusti Academy of ManagementSrusti Management Review0974-42742582-11482015-12-01VIIIII15Financial Market Structure and its Impact on Economic GrowthProf. Dhiren Jotwani0Assistant Professor – Economics and Finance, Institute of Management, Nirma UniversityThe process of economic growth is complex and depends on various factors. Macroeconomics places an important role on capital formation, i.e. physical investments. The process also involves progress in human capital, technology and knowledge. It also requires a stable regulatory and financial system in the country. The financial system acts as the main catalyst in the process of channelling of funds from surplus to deficit units. The fact that there is a relationship between financial development and growth is very highly debated. The broad consensus is that finance acts as a crucial channel in the process. An area of inquiry lies in the question of whether the structure of the financial system has any effect on the overall economic growth process. This involves the mix of banks and stock markets in the economy. Therefore, the basic question that this paper will attempt to answer is: does having a bankbased or market-based financial system matter for economic growth? The approach will involve basic causality tests using time-series data for the Indian economyhttp://www.srustimanagementreview.ac.in/paperfile/913785504_Financial%20Market%20Structure%20and%20its%20Impact%20on%20Economic%20Growth-Prof.%20Dhiren%20Jotwani-Vol%20-%20VIII%20%20Issue%20II%20%20Jul%20-%20Dec%202015.pdf: financial developmentfinancial structureeconomic growth. |
| spellingShingle | Prof. Dhiren Jotwani Financial Market Structure and its Impact on Economic Growth Srusti Management Review : financial development financial structure economic growth. |
| title | Financial Market Structure and its Impact on Economic Growth |
| title_full | Financial Market Structure and its Impact on Economic Growth |
| title_fullStr | Financial Market Structure and its Impact on Economic Growth |
| title_full_unstemmed | Financial Market Structure and its Impact on Economic Growth |
| title_short | Financial Market Structure and its Impact on Economic Growth |
| title_sort | financial market structure and its impact on economic growth |
| topic | : financial development financial structure economic growth. |
| url | http://www.srustimanagementreview.ac.in/paperfile/913785504_Financial%20Market%20Structure%20and%20its%20Impact%20on%20Economic%20Growth-Prof.%20Dhiren%20Jotwani-Vol%20-%20VIII%20%20Issue%20II%20%20Jul%20-%20Dec%202015.pdf |
| work_keys_str_mv | AT profdhirenjotwani financialmarketstructureanditsimpactoneconomicgrowth |