Financial market and growth: Evidence from post-reforms India

Figures & data

Figure 1. Trends in variables used in the model.

Table 1. Summary of the data-set

Year	ln non-food bank credit	ln non-food bank credit (Excluding agriculture)	ln average S&P CNX nifty	ln non-agricultural GDP
1993–1994	6.289	5.789	6.194	9.295
1994–1995	6.464	5.996	6.502	9.363
1995–1996	6.598	6.137	6.282	9.464
1996–1997	6.744	6.281	6.323	9.532
1997–1998	6.903	6.471	6.401	9.600
1998–1999	7.044	6.620	6.273	9.666
1999–2000	7.184	6.774	6.631	9.755
2000–2001	7.342	6.932	6.607	9.809
2001–2002	7.469	7.043	6.391	9.862
2002–2003	7.657	7.230	6.353	9.930
2003–2004	7.878	7.458	6.673	10.005
2004–2005	8.247	7.849	6.908	10.088
2005–2006	8.538	8.122	7.239	10.188
2006–2007	8.758	8.308	7.590	10.291
2007–2008	8.920	8.461	7.906	10.386
2008–2009	9.140	8.689	7.634	10.464
2009–2010	9.299	8.819	7.856	10.557

Source: RBI (Handbook of statistic on Indian Economy-2013).

Table 2. Results of Johansen cointegration test

Johansen tests for cointegration
Maximum rank	Parms	LL	Eigenvalue	Trace statistic	Maximum statistic	5% Critical value
						Trace statistic	Maximum statistic
0	9	69.25	–	43.04	33.31	24.31	17.89
1	14	85.91	0.89	9.73^*	9.73	12.53	11.44
2	17	90.78	0.47	0.00	0.00	3.84	3.84
3	18	90.78	0.00

Notes: Trend: none; Sample: 1996–2010; Number of observations = 15; Lags = 2.

^* Level of significance at 5%.

Table 3. Results for VAR model

Equation	Parms		RMSE	R^2	F	P > F
NBC_agri	4		0.06	1.00	1301.76	0
avg_S&P	4		0.15	0.95	71.71	0
gdp_ind&svr	4		0.01	1.00	7525.52	0
	Coef.	Std. Err.	t	P > t	[95% Conf.	Interval]
NBC_agri
NBC_agri
L1.	1.25	0.21	5.94	0.00	0.79	1.70
avg_S&P
L1.	−0.14	0.08	−1.88	0.08	−0.31	0.02
gdp_ind&svr
L1.	−0.36	0.47	−0.76	0.46	−1.39	0.67
_cons	2.82	3.36	0.84	0.42	−4.50	10.15
avg_S&P
NBC_agri
L1.	2.14	0.55	3.90	0.00	0.94	3.33
avg_S&P
L1.	0.17	0.20	0.85	0.41	−0.26	0.60
gdp_ind&svr
L1.	−4.14	1.24	−3.35	0.01	−6.84	−1.45
_cons	30.40	8.78	3.46	0.01	11.26	49.54
gdp_ind&svr
NBC_agri
L1.	0.16	0.03	4.81	0.00	0.09	0.24
avg_S&P
L1.	−0.03	0.01	−2.05	0.06	−0.05	0.00
gdp_ind&svr
L1.	0.64	0.08	8.31	0.00	0.47	0.81
_cons	2.57	0.55	4.70	0.00	1.38	3.76
Equation	Excluded	F	df	df_r	Prob > F
NBC_agri	avg_S&P	3.55	1	12	0.08
NBC_agri	gdp_ind&svr	0.57	1	12	0.46
NBC_agri	All	1.80	2	12	0.20
avg_S&P	NBC_agri	15.18	1	12	0.0021
avg_S&P	gdp_ind&svr	11.25	1	12	0.0057
avg_S&P	All	10.84	2	12	0.0020
gdp_ind&svr	NBC_agri	23.12	1	12	0.0004
gdp_ind&svr	avg_S&P	4.18	1	12	0.0633
gdp_ind&svr	All	12.46	2	12	0.0012

Notes: Sample: 1995–2010; Number of observations = 16; Log likelihood = 88.86; AIC: > −9.61; FPE = 1.39e−08; HQIC: > −9.58; Det(Sigma_ml) = 3.01e−09; and SBIC: > −9.03.

Reserve Bank of India. (2013). Handbook of statistic on Indian Economy. Retrieved from http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy

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