The IUP Journal of Applied Economics
Coupling Coordination Degree Among Indian Banking and Auto Sectors, DII and FII: An Empirical Investigation

Article Details
Pub. Date : Oct, 2022
Product Name : The IUP Journal of Applied Economics
Product Type : Article
Product Code : IJAE031022
Author Name : Goutam Sutar, Krantiraditya Dhalmahapatra and Sayan Chakraborty
Availability : YES
Subject/Domain : Economics
Download Format : PDF Format
No. of Pages : 16



The concept of Coupling Coordination Degree (CCD), which originated in Physics, refers to the phenomenon of variety of interactions between two or more systems and how they affect each other. This study applies the concept to four important Indian sectoral indices, namely, Banking, Automobile, Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII), to understand their interactions in the economy. Using data from FY2010 to FY2019 as a research sample, the CCD of the above-mentioned sectoral indices is measured. The result shows that in recent years, the coupling between the automobile and the banking industry is at a higher level due to several factors including foreign investments. This suggests that policymakers should concentrate more on foreign investments for the development of the economy. The coupling coordination between DII and automobile sector has been very strong for the past three years, which may help the authorities to formulate more effective policies.


Coupling is a phenomenon in which two or more systems influence one another through various interactions (Tang, 2015). This concept originates from physics and involves various system components. The basic premise of coupling the relationship between two variables provides the sum of all nonlinear relationships between the elements of the two systems. The concept of coupling is being widely used in studies of climate change and the environment (Li et al., 2012). However, of late, the concept is also used to explore the relationship between factors of various social science and economic systems (Liu et al., 2020).