Relationship Between Financial Market Freedom and Economic Growth: An Empirical Evidence from India

Abstract

The role of financial institutions and financial intermediaries in fostering economic growth (ECO) by improving the efficiency of capital accumulation, encouraging savings, and ultimately improving the productivity of the economy has been well established by the researchers. The reforms in the financial sector worldwide during the 1980s and 1990s were aimed at ushering in greater efficiency and more competitiveness.

The impact of financial market freedom (MF) on the overall development of the financial sector and thereby the growth in an economy is one of the most important considerations for policymakers over the years. This chapter aims to examine the causal relationship between financial MF and ECO in the Indian economy in the post-reform period.

Citation

Ghosh, A. (2023), "Relationship Between Financial Market Freedom and Economic Growth: An Empirical Evidence from India", Biswas, R. and Michaelides, M. (Ed.) Contemporary Issues in Financial Economics: Evidence from Emerging Economies (Research in Finance, Vol. 37), Emerald Publishing Limited, Leeds, pp. 81-96. https://doi.org/10.1108/S0196-382120230000037005