Published Paper Details:

The purpose of this paper is to conduct empirical research to find out is "financial deepening" effect economic growth in India ? Unlike many earlier research, focus of this Paper is on the "causal relationship between financial deepening and economic growth" in order to distinguish between numerous alternative theoretical ideas. The improved "Granger Causality Test" Method established by "Toda and Yamamoto (1995)" is used in this Paper. Variables such as "private sector credit, wide money, credit deposit ratio, and bank deposit liabilities" are used to describe "financial deepening". The findings largely support the concept that "financial deepening" is a key determinant of "economic growth", despite the fact that economic growth determines "financial deepening". The results do not differ much across the proxies considered for financial depth. The causal links are also demonstrated to be primarily long-term in character. As a result, to be able to develop "financial deepening" in India, government policies targeted at supporting economic growth must be consistent and long-term.