Page 64 - IILMGSM Journal_Management Perspective
P. 64
17213 311.7701 192.89 204.95 None **
0.792484 233.5962 156.00 168.36 At most 1 **
0.699420 161.2591 124.24 133.57 At most 2 **
0.536411 105.9653 94.15 103.18 At most 3 **
0.501402 70.60248 68.52 76.07 At most 4 *
0.317757 38.58858 47.21 54.46 At most 5
0.301573 20.99959 29.68 35.65 At most 6
0.084123 4.489085 15.41 20.04 At most 7
0.009668 0.446906 3.76 6.65 At most 8
*(**) denotes rejection of the hypothesis at 5%(1%) significance level
L.R. test indicates 5 co integrating equation(s) at 5% significance level
From the above analysis it can be concluded that This paper examines the integration between the
from the first sub period to the last the level of different segments of the domestic financial market
integration among the various market segments has in India namely money market, G sec market, credit
increased considerably. This shows that the reforms market, capital market and the foreign exchange
undertaken have brought about changes in the desired market. Monthly data for the period 1994 to 2008
direction. Though there is increasing integration but were used. Correlation analysis, Granger causality
still there is a room for improvement, especially in test and Johansen co integration test were employed.
case of the foreign exchange and the capital market. The study analyses in the depth the relationship of
Less integration of capital market with those of each variable with the others and the tracks the
others especially with credit market and call money changes over a period of time by dividing the study
market may be the reason why monetary policy period into three sub period - January 1994 to May
changes do not bring in desired results in this 2000, June 2000 to December 2004 and January 2005
segment. Moreover, there is need to improve co to December 2008.
integration of G Sec market with other markets. Most The results of the correlation analysis revealed that
importantly, the corporate debt market needs to be there is no movement of rates between the money
developed at a rapid pace as it is an important market, G sec market and the credit market. The
component of the domestic financial system. correlation among them was found to be at peak in
Summary and Conclusions the second sub period. In the third sub period there
63
0.792484 233.5962 156.00 168.36 At most 1 **
0.699420 161.2591 124.24 133.57 At most 2 **
0.536411 105.9653 94.15 103.18 At most 3 **
0.501402 70.60248 68.52 76.07 At most 4 *
0.317757 38.58858 47.21 54.46 At most 5
0.301573 20.99959 29.68 35.65 At most 6
0.084123 4.489085 15.41 20.04 At most 7
0.009668 0.446906 3.76 6.65 At most 8
*(**) denotes rejection of the hypothesis at 5%(1%) significance level
L.R. test indicates 5 co integrating equation(s) at 5% significance level
From the above analysis it can be concluded that This paper examines the integration between the
from the first sub period to the last the level of different segments of the domestic financial market
integration among the various market segments has in India namely money market, G sec market, credit
increased considerably. This shows that the reforms market, capital market and the foreign exchange
undertaken have brought about changes in the desired market. Monthly data for the period 1994 to 2008
direction. Though there is increasing integration but were used. Correlation analysis, Granger causality
still there is a room for improvement, especially in test and Johansen co integration test were employed.
case of the foreign exchange and the capital market. The study analyses in the depth the relationship of
Less integration of capital market with those of each variable with the others and the tracks the
others especially with credit market and call money changes over a period of time by dividing the study
market may be the reason why monetary policy period into three sub period - January 1994 to May
changes do not bring in desired results in this 2000, June 2000 to December 2004 and January 2005
segment. Moreover, there is need to improve co to December 2008.
integration of G Sec market with other markets. Most The results of the correlation analysis revealed that
importantly, the corporate debt market needs to be there is no movement of rates between the money
developed at a rapid pace as it is an important market, G sec market and the credit market. The
component of the domestic financial system. correlation among them was found to be at peak in
Summary and Conclusions the second sub period. In the third sub period there
63
