This article examines the role of financial development and trade openness in promoting private investment in India. We use data (1960– 2013) from the World Development Indicators database. After checking the time series properties of the data, we employ auto-regressive distributed lag (ARDL) estimation technique to investigate the impact of the concurrent existence of financial development and trade openness on private investment and whether the effect of financial development is dependent on the level of openness. The results show that, independently, financial development and trade openness have significant positive effects on India’s private sector investment, in both the long run and the short run. However, the effect of the interaction between financial development and trade openness on private investment is significantly negative, suggesting that the effect of financial development on private investment depends on the level of openness. Therefore, we conclude that care should be taken in the design of policies that allow for the coexistence of financial development and trade openness if India aims at promoting private sector capital formation for job creation.

JEL Classification: E22, E44, F10, F60

本文探讨了金融发展和贸易开放在促进印度私人投资方面的作用。我们使用来自世界发展指标数据库的数据（1960年至2013年）。在检查了数据的时间序列属性之后，我们采用自回归分布滞后（ARDL）估计技术来研究金融发展与贸易开放同时存在对私人投资的影响，以及金融发展的影响是否取决于私人投资。开放程度。结果表明，无论从长期还是短期来看，金融发展和贸易开放都对印度的私营部门投资产生了显着的积极影响。但是，金融发展与贸易开放之间的相互作用对私人投资的影响是显着的负面影响，这表明金融发展对私人投资的影响取决于开放程度。因此，我们得出结论，如果印度旨在促进私营部门的资本形成以创造就业机会，则在设计政策时应谨慎考虑，以使金融发展与贸易开放并存。

JEL分类： E22，E44，F10，F60