 Financialisation of Commodity Market in India: A Closer Look at the EvidencePratap Kumar Jena Romanian Economic Journal, 2016, vol. 19, issue 60, 147-168 Abstract: In recent years, it is observed that there is a huge inflow of investment towards a commodities futures market in India. At the same time, we are also facing very high price and also volatility in commodity prices in India. Therefore, this has generated a heated debate about whether financialisation distorts commodity prices in India. Though there is the lack of studies on the financialisation of commodity market in India, this paper made an attempt to empirically examine the financialisation of Commodity market in India using the time series techniques. From the unconditional correlation, it is found that commodity index price is highly correlated with the stock index price during the study period. The causality test indicates that commodity price granger causes to the stock price in India but reverse is not. Therefore, I found no strong evidence on the financialisation of commodity markets in India. This result is quite similar to the report of the Reserve Bank of India (RBI, 2009-10). Keywords: Commodity Market; Financialzation and Volatility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:19:y:2016:i:60:p:147-168 Access Statistics for this article Romanian Economic Journal is currently edited by Ioan Popa, PhD More articles in Romanian Economic Journal from Department of International Business and Economics from the Academy of Economic Studies Bucharest Contact information at EDIRC. |
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