• Priyambada Gupta
• B.Sharlo Zack
• Kanhaiya Gupta

How Stock market development affects economic activity is a question of both policy and academic significance. This study makes an attempt to analyze the direction of relation between securities market development and economic process in Indian context. Authors employ ADF and PP check to search out the order of integration of the variables used in the study. The paper applies ARDL bound testing approach to search out the proof of cointegration and to analyze the long-term and short run relation among the variables. Results show that there is a unidirectional causality flowing from stock market growth towards Indian GDP. These results are validated by studying impulse response function and variance decomposition exercise.

ARDL Bound Test; Granger Causality; Relation between Stock market and Economic growth

"Relationship between Stock Market Development and Economic Growth: Empirical Evidence from India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.515-522, June 2019, Available :http://www.jetir.org/papers/JETIR1907K80.pdf

"Relationship between Stock Market Development and Economic Growth: Empirical Evidence from India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp515-522, June 2019, Available at : http://www.jetir.org/papers/JETIR1907K80.pdf