Codebase for ECON F244: Economics of Growth and Development Course Term Paper
The report can be accessed here: Contact authors for link
- Dhruv Rawat (2019B3A70537P)
- Sujay Patni (2019B3A70575P)
- Ram Mehta (2019B3A80510P)
- Nikunj Mehadia (2019B3A70343P)
Financial markets that function well are very important for the long-run economic growth of a country. This report looks at how the financial development of an economy can be measured. It tests the significant dependence of the following variables on the measurement of financial development for India:
- Index of Financial Development (IFD)
- Deposit Money Bank Assets to (Deposit Money + Central) Bank Assets (%) (DMB)
- Liquid Liabilities to GDP (%) (L.L.)
- Central Bank Assets to GDP (%) (CBA)
For this purpose, data were gathered from the period 1980 to 2017. A time-series approach using the VAR Model is used to provide evidence for the dynamic relationship between financial development and the given institutional depth indicators. Finally, this report attempts to forecast the value of the variables and suggest few policies to increase India’s financial development.