This paper investigates the cyclical dynamics of business, credit, and investment sectors in India using annual data from 1980 to 2021. It examines the impact of domestic and global financial cycles on the business cycle using the Hodrick-Prescott filter, structural vector autoregression (SVAR), and Granger causality tests. Results reveal a divergence between domestic and global financial cycles and a long-run relationship between business, investment, and credit cycles. Credit cycles are shown to provide valuable insights for managing business cycles in India.
Publisher
Humanities and Social Sciences Communications
Published On
Apr 15, 2024
Authors
Ridhima Garg, A. N. Sah
Tags
business cycles
credit cycles
investment
financial dynamics
India
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