American Journal of Economics and Business Management, 2022
According to many studies, many developing as well as developed economies have found a significan... more According to many studies, many developing as well as developed economies have found a significant relationship between interest rate and economic growth. This paper studies the interaction between Interest rate and the Economic growth of Indian economy. We analyzed the related data connecting with other factors that might have an impact on the particular linkage such as FDI, Inflation, unemployment and National Income. This study is based on annual time series data for the period from 1980 to 2020. We incorporated the use of analytical model such as unit root test, cointegration test, vector error correction model and Granger's Causality Test. The findings shows that Interest rate has a significant impact on economic growth during the time period. The economic growth in turn also affects the FDI inflow into the country.
INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 2022
On the one hand, the stock market motivates individuals to invest in financial products and prese... more On the one hand, the stock market motivates individuals to invest in financial products and preserve money, while on the other, it makes it simple for businesses to obtain long-term funding for capital projects. However, the volatility of the stock market and its connections to economic growth have received less attention in recent economic times, which has a substantial impact on those who invest in it on a large scale. Retail investors have suffered significant wealth losses during times of acute market crashes, and this issue needs to be addressed. This study investigates whether there are long-run and short-run dynamic interactions between stock prices and GDP growth rate, which are robust to structural fractures in the cointegration vector as well as the deterministic vector, using the cointegration test and Granger causality approaches. The study also looks into the direction of causality in the event that a long/short-run correlation is found. If there is a significant correlation between stock prices and these variables and a causal linkage linking macroeconomic variables to stock prices, macroeconomic variable fluctuations can be controlled to prevent stock market crises (specifically, controlling exchange rates and interest rate movements). The government can focus on domestic economic policy to maintain the stock market throughout any financial crisis. The global bank's data for India and the Sensex were used to calculate the study's indices.
American Journal of Economics and Business Management, 2022
According to many studies, many developing as well as developed economies have found a significan... more According to many studies, many developing as well as developed economies have found a significant relationship between interest rate and economic growth. This paper studies the interaction between Interest rate and the Economic growth of Indian economy. We analyzed the related data connecting with other factors that might have an impact on the particular linkage such as FDI, Inflation, unemployment and National Income. This study is based on annual time series data for the period from 1980 to 2020. We incorporated the use of analytical model such as unit root test, cointegration test, vector error correction model and Granger's Causality Test. The findings shows that Interest rate has a significant impact on economic growth during the time period. The economic growth in turn also affects the FDI inflow into the country.
INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 2022
On the one hand, the stock market motivates individuals to invest in financial products and prese... more On the one hand, the stock market motivates individuals to invest in financial products and preserve money, while on the other, it makes it simple for businesses to obtain long-term funding for capital projects. However, the volatility of the stock market and its connections to economic growth have received less attention in recent economic times, which has a substantial impact on those who invest in it on a large scale. Retail investors have suffered significant wealth losses during times of acute market crashes, and this issue needs to be addressed. This study investigates whether there are long-run and short-run dynamic interactions between stock prices and GDP growth rate, which are robust to structural fractures in the cointegration vector as well as the deterministic vector, using the cointegration test and Granger causality approaches. The study also looks into the direction of causality in the event that a long/short-run correlation is found. If there is a significant correlation between stock prices and these variables and a causal linkage linking macroeconomic variables to stock prices, macroeconomic variable fluctuations can be controlled to prevent stock market crises (specifically, controlling exchange rates and interest rate movements). The government can focus on domestic economic policy to maintain the stock market throughout any financial crisis. The global bank's data for India and the Sensex were used to calculate the study's indices.
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Papers by Juhi Bakshi