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What Explains the Volatility of India's Catch-up Growth?

Author

Listed:
  • Ashima Goyal

    (Indira Gandhi Institute of Development Research
    Institute of Economic Growth)

Abstract

Indian post reform growth rates have been higher but more volatile compared to transition periods forother comparable countries. The reasons are aggravation of shocks due to unaddressed criticalbottlenecks together with pro-cyclical macroeconomic policy that compressed aggregate demand.Reform is required to relieve constraints, but traditional reforms may be neither appropriate norachievable. Feasible reforms are discussed. Since diversity and resilience has increased and someconstraints have eased, the paper argues sustained high growth is reachable with the relevant policy support.

Suggested Citation

  • Ashima Goyal, 2019. "What Explains the Volatility of India's Catch-up Growth?," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-008, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2019-008
    as

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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2019-008.pdf
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    References listed on IDEAS

    as
    1. Ashima Goyal, 2013. "Sustaining growth: Interests versus institutions," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-001, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. Ashima Goyal, 2014. "Purchasing Power Parity, Wages and Inflation in Emerging Markets," Foreign Trade Review, , vol. 49(4), pages 327-347, November.
    3. Commission on Growth and Development, 2008. "The Growth Report : Strategies for Sustained Growth and Inclusive Development," World Bank Publications - Books, The World Bank Group, number 6507.
    4. Ashima Goyal, 2018. "Indian Banks and the Prevention of Corruption Act: Freedom and Discipline," Working Papers id:12944, eSocialSciences.
    5. Zhongxiang Zhang, 2018. "Energy price reform in China," CCEP Working Papers 1805, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    6. Corbo, Vittorio & Fischer, Stanley, 1995. "Structural adjustment, stabilization and policy reform: Domestic and international finance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 44, pages 2845-2924, Elsevier.
    7. Goyal, Ashima, 2018. "The Indian Fiscal-Monetary Framework: Dominance or Coordination?," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 8(1), pages 1-13.
    8. Ashima Goyal, 2018. "The Indian fiscal-monetary framework: Dominance or coordination?," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-010, Indira Gandhi Institute of Development Research, Mumbai, India.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; growth; volatility; resilience; reforms; shocks; pro-cyclical;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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