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Financial Globalisation and India: Internal and External Dimensions

Author

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  • Azad, Rohit
  • Bose, Prasenjit
  • Dasgupta, Zico

Abstract

The Research Project seeks to study the implications of financial liberalisation, global financial integration and cross-border capital flows for the Indian economy. The direction of policy change in India over the past two decades and a half has been in this direction. The domestic financial sector has grown significantly in the past decade, which has impacted the trajectory of real sector growth and economic development. The report contains four chapters. The first one introduces the readers to the Indian macroeconomic scene over the past two decades and the financial aspects of the growth process. The second chapter focuses on the internal dimensions of the growth process and the recent developments in the financial sector, especially the bad loans crisis. The third chapter looks at financial globalisation and its impact on India’s external vulnerability. The concluding chapter presents a theoretical model which seeks to explain the nature and consequences of financial liberalisation and the integration of the Indian economy into the globalised economy.

Suggested Citation

  • Azad, Rohit & Bose, Prasenjit & Dasgupta, Zico, 2016. "Financial Globalisation and India: Internal and External Dimensions," MPRA Paper 63874, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:63874
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    File URL: https://mpra.ub.uni-muenchen.de/63874/1/MPRA_paper_63874.pdf
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    References listed on IDEAS

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    3. World Bank & International Monetary Fund, 2005. "Financial Sector Assessment : A Handbook," World Bank Publications - Books, The World Bank Group, number 7259.
    4. Lane, Philip R. & Milesi-Ferretti, Gian Maria, 2007. "The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970-2004," Journal of International Economics, Elsevier, vol. 73(2), pages 223-250, November.
    5. Patnaik, Prabhat, 1997. "Accumulation and Stability under Capitalism," OUP Catalogue, Oxford University Press, number 9780198288053.
    6. Montek S. Ahluwalia, 2002. "Economic Reforms in India Since 1991: Has Gradualism Worked?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 67-88, Summer.
    7. Sebastian Edwards, 2007. "Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences," NBER Books, National Bureau of Economic Research, Inc, number edwa06-1.
    8. Lane, Philip & Milesi-Ferretti, Gian Maria, "undated". "External Wealth of Nations," Instructional Stata datasets for econometrics extwealth, Boston College Department of Economics.
    9. Planning Commission, India, 2008. "Eleventh Five Year Plan (2007–2012) Volume I Inclusive Growth," Working Papers id:1582, eSocialSciences.
    10. Sebastian Edwards, 2007. "Introduction to "Capital Controls and Capital Flows in Emerging Economies: Policies, Practices and Consequences"," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 1-18, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Rohit Azad & Prasenjit Bose, 2017. "India's Growth Story: A Model of `Riskless Capitalism'?," Working Papers 1712, New School for Social Research, Department of Economics.

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    More about this item

    Keywords

    Corporate Investment; Debt; NPAs; Riskless Capitalism; Kaleckian Model;
    All these keywords.

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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