{"title":"Financial Development and Productivity of Manufacturing Sector in India: An Econometric Analysis","authors":"Manisha, Ranjan Aneja","doi":"10.1177/09763996231176438","DOIUrl":null,"url":null,"abstract":"Financial system is considered an important factor to enhance the productivity growth. Financial development (FD) is closely related with economic process as it leads to higher saving and efficiency. The nexus between FD and economic growth is increasingly well established. This paper measures the effect of development in financial sector on the total factor productivity (TFP) of Indian manufacturing sector for the period of 1998–2017. This study used autoregressive distributed lag co-integration approach and Granger causality test to investigate relationship between the financial development index (FDI) and productivity. The results of the study revealed that there is long-run association between FDI and productivity growth of manufacturing sector in India. The study also investigated that the unidirectional relationship exists between FD and TFP of Indian manufacturing sector from FDI to TFP change.","PeriodicalId":41791,"journal":{"name":"Millennial Asia","volume":null,"pages":null},"PeriodicalIF":1.3000,"publicationDate":"2023-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Millennial Asia","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/09763996231176438","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
Financial system is considered an important factor to enhance the productivity growth. Financial development (FD) is closely related with economic process as it leads to higher saving and efficiency. The nexus between FD and economic growth is increasingly well established. This paper measures the effect of development in financial sector on the total factor productivity (TFP) of Indian manufacturing sector for the period of 1998–2017. This study used autoregressive distributed lag co-integration approach and Granger causality test to investigate relationship between the financial development index (FDI) and productivity. The results of the study revealed that there is long-run association between FDI and productivity growth of manufacturing sector in India. The study also investigated that the unidirectional relationship exists between FD and TFP of Indian manufacturing sector from FDI to TFP change.
期刊介绍：
Millennial Asia: An International Journal of Asian Studies is a multidisciplinary, refereed biannual journal of the Association of Asia Scholars (AAS)–an association of the alumni of the Asian Scholarship Foundation (ASF). It aims to encourage multifaceted, multidisciplinary and interdisciplinary research on Asia, in order to understand its fast changing context as a growth pole of global economy. By providing a forum for Asian scholars situated globally, it promotes dialogue between the global academic community, civil society and policy makers on Asian issues. The journal examines Asia on a regional and comparative basis, emphasizing patterns and tendencies that go beyond national borders and are globally relevant. Modern and contemporary Asia has witnessed dynamic transformations in cultures, societies, economies and political institutions, among others. It confronts issues of collective identity formation, ecological crisis, rapid economic change and resurgence of religion and communal identifies while embracing globalization. An analysis of past experiences can help produce a deeper understanding of contemporary change. In particular, the journal is interested in locating contemporary changes within a historical perspective, through the use of interdisciplinary and multidisciplinary approaches. This way, it hopes to promote comparative studies involving Asia’s various regions. The journal brings out both thematic and general issues and the thrust areas are: Asian integration, Asian economies, sociology, culture, politics, governance, security, development issues, arts and literature and any other such issue as the editorial board may deem fit. The core fields include development encompassing agriculture, industry, regional trade, social sectors like health and education and development policy across the region and in specific countries in a comparative perspective.
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