In the early 1990s, financial liberalization started in India, and it was thought that such reforms would increase ecomic growth. This argument formed part of the finance led industrialization hypothesis and although higher growth resulted, higher industrialization did t immediately. This book is the first study to comprehensively apply the flow of funds model for India. Using detailed data of the Indian ecomy, the whole financial sector is presented with associated policy simulation for India. The demand function is theoretically grounded in the Almost Ideal Demand System and cointegration techniques are adapted into the ecometric methodology. The policy simulation experiments are conducted with a view to analyzing the delivery of loanable funds to sectors which are the most in need of poverty-reducing ecomic growth. The system-wide simulation as a result of interactions with disaggregated ecomic sectors will allow the analysis of a wide spectrum of policy effects on issues such as the determinant of interest rates, financial capital formulation, and the role of financial institutions, government debt and allocation of credit. India's Emerging Financial Market provides a thorough and rigorous analysis of policy responses in India and will be of interest to academics working on development ecomics in general and South Asia in particular.
Tomoe Moore is a senior Lecturer of Economics and Finance at Coventry University, UK. Her main research interest lies in the development of finance, and she has published in leading journals including Journal of Comparative Economics, Economic Development and Cultural Change, Journal of Development Studies and Review of Development Economics.
Taylor & Francis Ltd
Date of Publication
Economics: Professional & General
Routledge Studies in the Growth Economies of Asia
Place of Publication
Country of Publication
7 black & white illustrations, 44 black & white tables, 7 black & white line drawings