Title: Does any dynamic interaction between mutual fund and economic growth exist? Evidence from India

Authors: Kamaljit Singh; Jasvinder Kaur

Addresses: University School of Management, Kurukshetra University, Kurukshetra, 136119, Haryana, India ' Department of Commerce, Kurukshetra University, Kurukshetra, 136119, Haryana, India

Abstract: The objective of this research is to study the existence and direction of the short-run or long-run relationship between gross mutual fund (GMF) flow and gross domestic product (GDP) in India. The data for the period of 1993 to 2018 has been analysed by employing the vector error correction model (VECM) and for the verification of the same result, a standard Granger causality test has been performed. The results of the study have suggested the existence of a long-run relationship and show the direction of changes in gross domestic product cause changes in gross mutual fund flow. As a policy implication, economic growth can be considered as a policy variable to improve the mobilisation of mutual fund resources in India.

Keywords: mutual fund; economic growth; resources mobilisation; error correction model; Granger causality test; India.

DOI: 10.1504/IJICBM.2021.116122

International Journal of Indian Culture and Business Management, 2021 Vol.23 No.3, pp.309 - 323

Received: 28 Apr 2020
Accepted: 05 Jul 2020
Published online: 12 Jul 2021 *

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