EconPapers    
Economics at your fingertips  
 

Long Run and Short Run Linkages Between Credit and Output: An Appraisal of the Districts of West Bengal in India

Ramesh Chandra Das and Bankim Ghosh
Additional contact information
Ramesh Chandra Das: Vidyasagar University, India
Bankim Ghosh: Katwa College, India

International Journal of Asian Business and Information Management (IJABIM), 2021, vol. 12, issue 2, 110-123

Abstract: An appropriate link between the financial sector and real sector is required to have a balanced growth and development of a country as well as its regional levels particularly for the countries whose financial developments are not being saturated. In the present study, the authors have examined whether there are long run equilibrium relation between financial development (proxied by commercial bank credit) and real sector's development (proxied by net district domestic products) and short run causations for the districts of the state of West Bengal in India for the period 1993-2014. Applying the Engel-Granger cointegration and Granger causality approaches, the study reveals that there are cointegrating relations between credit and domestic products of the 13 districts out of which errors are corrected for 10 districts. Further, there are unilateral causal relations between the variables in nine districts with 11 producing no such causal relations. The study thus prescribes for strengthening the two sectors' developments so that there can be appropriate linkages between credit and output across the district levels in the longer runs.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... /IJABIM.20210401.oa7 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jabim0:v:12:y:2021:i:2:p:110-123

Access Statistics for this article

International Journal of Asian Business and Information Management (IJABIM) is currently edited by Patricia Ordóñez de Pablos

More articles in International Journal of Asian Business and Information Management (IJABIM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().

 
Page updated 2025-03-19
Handle: RePEc:igg:jabim0:v:12:y:2021:i:2:p:110-123