India’s Emerging Financial Market: A Flow of Funds Model (Routledge Studies in the Growth Economies of Asia)
In the early 1990s, financial liberalization started in India, and it was thought that such reforms would increase economic growth. This argument formed part of the finance led industrialization hypothesis and although higher growth resulted, higher industrialization did not immediately. This book is the first study to comprehensively apply the flow of funds model for India.
Using detailed data of the Indian economy, 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 econometric 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 economic growth. The system-wide simulation as a result of interactions with disaggregated economic sectors will allow the analysis of a wide spectrum of policy effects on