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Analyzing the importance of forward orientation in financial development-growth nexus: Evidence from big data

Author

Listed:
  • Taniya Ghosh

    (Indira Gandhi Institute of Development Research)

  • Prashant Mehul Parab

    (Indira Gandhi Institute of Development Research)

  • Sohini Sahu

    (Indian Institute of Technology Kanpur)

Abstract

The paper analyzes how the citizens' attitude towards future, obtained using big data, affects the relationship between the nation's financial development and economic growth. All financial development indicators, except for one, show significant negative growth effects. We find that individual's attitude towards future as captured by future orientation index (FOI) plays a significant role in affecting this relation. In particular, FOI interacts with financial development, and weakens the negative effect of financial development on nation's economic growth.

Suggested Citation

  • Taniya Ghosh & Prashant Mehul Parab & Sohini Sahu, 2019. "Analyzing the importance of forward orientation in financial development-growth nexus: Evidence from big data," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-031, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2019-031
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2019-031.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Developing countries; Developed countries; Economic growth; Financial development; Future Orientation Index;
    All these keywords.

    JEL classification:

    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • G2 - Financial Economics - - Financial Institutions and Services
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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