Cointegration of Select Equity Indices of India and G7 Countries - An Empirical Study

Abstract

India is one of the fastest growing economies in the world after China. It is increasingly being integrated with developed and emerging countries of the world. Since globalisation and liberalization of the economy and subsequent economic and political reforms, India has made tremendous influences in global economies, especially in equity markets of developed and emerging countries. This empirical analysis aims to examine and study the short-run and long-run dynamic linkages between India and global super power G7 countries. The study heavily depends on Econometrics models and their analysis for reaching at conclusion about the short-run and long-run linkages between India and G7 countries.