Strengthening the Capital Market in India: A Key to Growth
DOI:
https://doi.org/10.17010/ijf/2016/v10i2/87233Keywords:
Market Turnover
, Foreign Investments, GDP Growth, Capital MarketsE22
, E44, G21, O16Paper Submission Date
, April 5, 2015, Paper sent back for Revision, July 6, Paper Acceptance Date, November 20, 2015.Abstract
In order to ensure consistent and inclusive growth of an economy, capital markets play a critical role in mobilizing the savings in productive and long-term assets. Capital markets provide a medium of transforming the economy into a more efficient, competitive market place, provide a medium to diversify the risk, improve the information quality and lead to the adoption of stronger corporate governance norms. The study focused upon the importance of capital markets for sustainable growth in emerging markets like India. The relationship between economy and growth of the capital market in the amount of capital generated through primary issuances, exchange trading turnovers, market indices, market capitalization, and so forth was analyzed.Downloads
Downloads
Published
How to Cite
Issue
Section
References
Ady, P. (1973). Money and capital in economic development: By R.I. McKinnon. (Washington, D.C.: The Brookings Institution, 1973. Pp. 177. index.). World Development, 2 (3), 87 - 88.
Ake, B. (2010). The role of stock market development in economic growth : Evidence from some Euronext countries. International Journal of Financial Research, 1 (1), 14-20.
Atje, R., & Jovanovic, B. (1993). Stock markets and development. European Economic Review, 37, 632-640.
Azarmi, T., Lazar, D., & Jeyapaul, J. (2005). Is the Indian stock market a casino? Journal of Business and Economic Research, 3 (4), 63 - 72.
Beck, T., Levine, R., and Loayza, N. (2000). Finance and the sources of growth. Journal of Financial Economics, 58, 261-300.
Bekaert, G. (1995). Market integration and investment barriers in emerging equity markets. The World Bank Economic Review, 9 (1), 75-107.
Bekaert, G., & Harvey, C. R. (1997). Capital markets: An engine for economic growth (NBER Cambridge, MA 02138). Retrieved from https://faculty.fuqua.duke.edu/~charvey/Research/Published_Papers/P58_An_engine_for.pdf
Bencivenga, V. R., Smith, B. D., & Starr, R. M. (1991). Equity markets, transaction costs, and capital accumulation: An illustration. The World Bank Economic Review, 10 (2), 241-265.
Bhattacharya, P.C., & Sivasubramanian, M.N. (2003). Financial development and economic growth in India : 1970-1971 to 1998-1999. Applied Financial Economics, 13, 925-929.
Capasso, S. (2006). Stock market development and economic growth. World Institute for Development Economics Research. Retrieved from file:///C:/Users/HP8/Downloads/rp2006-102_1.pdf
Demirguc-Kunt, A., & Levine, R., (1996). Stock markets, corporate finance, and economic growth: An overview. World Economic Review, 10 (2), 223-239.
Fritz, R. G. (1984). Time series evidence of the causal relationship between financial deepening and economic development. Journal of Economic Development, 9 (1), 91-112.
Goldsmith, R. W. (1969). Financial structure and development. New Haven, CT : Yale University Press.
Greenwood, J., & Smith, B. D. (1997). Financial markets in development and the development of financial markets. Journal of Economic Dynamics and Control, 21, 145-181.
Gurley, J., & Shaw, E. (1955). Financial aspects of economic development. American Economic Review, 45, 515-537.
Kamat, M. S., & Kamat, M. M. (2007). Does financial growth lead economic performance in India? Causality-cointegration using unrestricted vector error correction models. The Indian Journal of Commerce, 60 (4), 16-37.
Levine, R. (1991). Stock markets, growth, and tax policy. Journal of Finance, 46 (4), 1445-1465. DOI: 10.1111/j.1540-6261.1991.tb04625.x
Levine, R., & Zervos, S. (1998). Stock markets, banks, and economic growth. American Economic Review, 88 (3), 537-58.
Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: Causality and causes. Journal of Monetary Economics, 46, 31-77.
Mayer, C. (1988). New issues in corporate finance. European Economic Review, 32 (5), 1167-1188.
O' Brien, D. (2010). The Penguin- CNBC TV 18 business year book 2010. Retrieved from https://books.google.co.in/books?id=E1_97rguSuAC&pg=PA209&lpg=PA209&dq
Padhan, P.C. (2007). The nexus between stock market and economic activity : An empirical analysis for India. International Journal of Social Economics, 34 (10), 741-753.
Paramati, S. R., & Gupta, R. (2011). An empirical analysis of stock market performance and economic growth. International Research Journal of Finance and Economics, 73, 133-149.
Patrick, H.T. (1966). Financial development and economic growth in underdeveloped countries. Economic Development and Cultural Change, 14 (2), 174-189.
Perotti, E. C., & Van Oijen, P. (1999). Privatization, political risk and stock market development (CEPR Discussion Papers 2243). Retrieved from http://www.oecd.org/daf/ca/corporategovernanceofstate-ownedenterprises/1923974.pdf
Rajan, R. G., & Zingales, L. (1998). Financial development and growth. The American Economic Review, 88 (3), 559-586.
Schumpeter, J. (1934). The theory of economic development. Cambridge, MA : Harvard University Press.
Shaw, E.S. (1973). Financial deepening in economic development. New York : Oxford University Press.
Singh, A. (1997). Financial liberalisation, stock markets, and economic development. The Economic Journal, 107 (442), 771-782.
Spears, A. (1991). Financial development and economic growth - causality tests. Atlantic Economic Journal, 19 (3), 66-74.
Vazakidis, A., & Adamopoulos, A. (2009). Stock market development and economic growth. American Journal of Applied Science, 6 (11), 1932 -1940. DOI : 10.3844/ajassp.2009.1932.1940