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Presents a bibliography of studies related to financial development and economic growth that were published in the December 2005 issue of "Finance India." "The Impact of Banking and Fiscal Policies on Economic Growth," by Burton A. Abrams et al; "Volatility of International Financial Markets: Regulations & Financial Supervision," by J. D. Agarwal; "Stock Markets and Development," by R. Atje and B. Jovanovic.

This paper investigates the existence of inter-dependence between the Indian stock market (ISM) and Asia's emerging markets since 1990. This study analyzes whether the MSCI Asian Index has significantly influenced the Bombay Stock Exchange Index before, during, and after the Asian financial crisis To address Ibis issue, we first use a rolling correlation, and conduct uni-directional and bi-directional causality tests using a Granger causality test. We then examine impulse response functions and variance decompositions of forecast errors based on a VAR model These tests provide evidence that the influence of the Asian market on the Indian market has increased during and after the Asian financial crisis. We interpret these results as evidence that the Indian market is moving toward integration with other Asian markets. We conclude that the influence of the Asian markets on the movements in the ISM has been rising since the periods during and after the crisis. [ABSTRACT FROM AUTHOR]

This paper investigates the long run and short run relationships among selected Asian stock index futures markets (i.e., Malaysia, Singapore, Taiwan and Hong Kong). Johansen's cointegrations test has been used to study file long run equilibrium relationship among the four stock index futures markets. Hence, potential for risk minimisation through diversification of index, futures across these markets is less for investors with long holding periods. The error correction term revealed that the Taiwan stock index futures market plays the leading role in driving the movements of the other markets towards the long run equilibrium. Since the four stock index future markets are cointegrated, the causal relations among these variables are examined within one Vector Error Correction Model (VECM) which allows the combinational short-run and long-run dynamic adjustments among these variables. [ABSTRACT FROM AUTHOR]

The Global Financial Market Integration can be understood as a situation where there is no quantitative and qualitative barriers like tariffs, taxes and restriction on trading in foreign assets or information costs which hamper the free flow of capital from one market to another. Over the past few decades, the world stock markets have surged, and emerging markets have accounted for a large amount of this boom. The speed and extent of stock market development in developing countries have been unprecedented and have led to fundamental shift both in the financial structures of less developed countries and in the capital flows from developed nations. In order to understand the emerging stock market integration dynamics better, this research focuses on four emerging countries-Brazil, Russia, India and China collectively called as BRIC and developed countries -U.S, U.K, Japan and Germany. An attempt has been made in this study to analyse the integration between different BRIC countries and developed countries. [ABSTRACT FROM AUTHOR]

Keeping abreast of recent developments on the global financial markets, the Stock Exchange of Mauritius (SEM) automated its trading infrastructure on 29'h June 2001. This study investigates the impact of the introduction of the electronic trading, the SEMAT, on the liquidity and volatility of the SEM. Two samples of shares (Amost liquid; B-least liquid) are used to study the effects of the new trading mechanism on liquidity and volatility. While an increase in liquidity was noted for the A shares, no significant changes were observed for the B shares. Also, similar to the findings of Green, Manos, Murinde and Suppakitjarak (2003), an increase in liquidity was noticed while no significant changes were found in volatility for the A shares. However, the B shares did not experience any improvement with regards to change in liquidity but experienced a significant increase in volatility in the SEM. [ABSTRACT FROM AUTHOR]