Framing a financial development index and conducting comparative analysis - between India and USA

Gunjit Kaur

Financial market plays important role in economic development of a country. Stock market has become an important indicator to look into the prospects of a country. In the paper the author try to create a broader index which will include variables to measure the depth and efficiency of the capital and banking sector to give a complete overview about the financial development of the economy. In this paper an index is made to measure financial development of the economy by making use of different proxy variables of financial development. GDP at constant US($) 2010 is used to measure economic growth, Broad money as a percentage of GDP, domestic credit provided by financial institution as a percentage of GDP and ratio of stock market capitalization as a percentage of GDP for measuring the extent of financial efficiency and deepening. Financial time series yearly data from the period 1979-80 to 2013-14 is used. This paper tries to develop an index for two sample countries: India and USA and then try to compare the trend, pattern and degree of development in the respective economy. The paper tries to explain the trend between different business cycle with special reference to financial crises of 2007-08. The study attempts to analyse the presence of any long run relationship and granger causality between the financial development of Indian and USA market.

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"Framing a financial development index and conducting comparative analysis - between India and USA", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.4, Issue 7, page no.84 - 90, July-2019, Available :https://ijsdr.org/papers/IJSDR1907016.pdf

Volume 4 Issue 7, July-2019

Pages : 84 - 90

Paper Reg. ID: IJSDR_190757

Published Paper Id: IJSDR1907016

Downloads: 000347205

Research Area: Engineering

Country: -, -, -

Published Paper PDF: https://ijsdr.org/papers/IJSDR1907016

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR1907016

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJSDR(IJ Publication) Janvi Wave

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