The Relationship among Private Equity, Inflation, and Economic Growth

Abstract

The aim of the study is to examine the interrelationships among private equity, financial stability, and the economic growth of India for the period 1996–2014. After proving cointegration, a bidirectional relationship has been found between private equity and economic growth. Also, short-run causality has been found between private equity and economic growth and economic growth and inflation. This study is significant as it is the first of its kind to find interrelationship between private equity, economic growth, and stability for India. The models confirm that private equity has a positive influence on macroeconomic factors.