2019 ieee 6th international conference on industrial engineering and applications, iciea 20192018Vol. XXVpp. 113-124
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chandrashekar2018theoreticalfinancial
Abstract
This paper studies the relationship between the financial development, trade openness
and economic growth in India. The Phillips-Perron (PP) test is used to check the order of
integration of the variables. We apply both Johansen co-integration and Granger causality
methodologies for a long run relationship and the direction of the Causality between the variables.
Our findings confirm that there exist the long run relationship among financial development, trade
openness, and growth. Results also support the idea that country may experience faster per-capita
growth with a growing degree of trade openness through gains in country productivity associated
with capital accumulation. Finally, the direction of the causality results followed mixed.