Theoretical and Applied Economics
No. 1 / 2015 (602), Spring
Measuring financial development in India: A PCA approach
School of Humanities and Social Sciences, Indian Institute of Technology Indore, Madhya Pradesh, India
Abstract. Financial development is a multidimensional concept and its measurement is thorny for the researchers. A good measurement of financial development is decisive in evaluating the progress of financial sector development and understanding the corresponding impact on economic growth and poverty reduction. The study makes use of the PCA (Principal components analysis) to construct a financial depth index (IFD) that serves as a proxy variable of financial development position of the country. This paper used Indian time series data covering a period from 1980 to 2011(Index-1) and 1990-2011(Index-2) for measurement of two separate financial development index. This study gives insight for understanding various financial sector proxies as well as to enhance the knowledge of financial position of the country. The proposed index is easy to compute and comparable across countries.
Contents
The credit impact on the economic growth
Predicting balance of payments crises for some emerging economies
Creativity and innovation – Sources of competitive advantage in the value chain of tourism enterprises
How to escape the middle income trap: international evidence from a binary dependent variable model
Land value dynamics with endogenous human and physical capital accumulation
Environmental Kuznets curve. Evidence from Romania
Effects of economic crisis on the distribution of earnings from Romania
An approach of social policy in terms of macro-stabilisation function
Economy recovery risks which Romanian companies has to cope with
The measurement of fiscal behavior in some European countries: Panel data perspective
Romanian municipal bond market at Bucharest Stock Exchange: further investigations
Inequality and economic growth: theoretical and operational approach
Measuring financial development in India: A PCA approach
Welfare costs due to economic fluctuations according to different model setups
The role of rating agencies in international financial market
Socioeconomic development index ranking calculations of cities with fuzzy clustering method: case of Turkey
Fiscal transparency in the European Union
Epistemic transfers in economics from social sciences
Accelerating the development of learning organizations: Shifting paradigms from current practice to human performance improvement
Transferring business intelligence and big data analysis from corporations to governments as a hybrid leading indicator
The impact of cultural and educational accumulations on entrepreneurial behaviour. Main issues encountered in theoretical approaches
Models for evaluating financial crisis – what went wrong for developed and emerging economies?
Impact of financial crisis on the decision making process for insurance consumers
Beyond the implementation of a dynamic stochastic general equilibrium model
How the legislation influenced the M&A transactions in Romania