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Does Financial Outreach Engender Economic Growth? Evidence from Indian States

Saibal Ghosh

MPRA Paper from University Library of Munich, Germany

Abstract: The paper makes a systematic attempt to ascertain the nexus between finance and growth at the sub-national level for an emerging economy. Using data on major states in India for 1973 to 2004, the analysis indicates significant regional divergences in financial outreach across states, as also in terms of their income characteristics. As well, while indicators of financial outreach have exhibited improvements, their relationship with growth appears to have become tenuous, especially over the reforms period.

Keywords: inclusion; sub-national; economic growth; India (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2009
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Published in Journal of Indian Business Research 2.3(2011): pp. 74-99

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