Financial Sector Liberalization and Household Savings in India

Nair, Lekshmi R.

doi:10.2139/ssrn.876879

Cited by 12 publications

(10 citation statements)

References 57 publications

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“…In particular, they used eight policy components of financial indicators: interest rate deregulation, pro-competition measures, reserve requirements, directed credit, bank ownership, prudential regulations, stock markets reform and international financial liberalization. This approach was applied by Laeven (2003), Nair (2004), Shrestha et al (2005), Ahmed (2007) and .…”

Section: Construction Of Financial Development Indexmentioning

confidence: 99%

Does Financial Development Hamper Economic Growth: Empirical Evidence From Bangladesh

Hye

Islam

2012

Journal of Business Economics and Management

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The objective of this study is twofold. (a) Construct the first ever financial development index (FDI) for Bangladesh using the principal component method (PCM). (b) Use the FDI to explore the existence of a long run relationship between FDI and economic growth. The Augmented Dickey Fuller and the Ng-Perron unit root tests have been applied to examine the stationarity properties of the series. To explore a long run relation, the Autoregressive Distributed Lag (ARDL) approach to cointegration; and to assess the stability of the parameters, the rolling window regression approach have been used. The results show that the impact of real interest rate (RIR) and FDI on economic growth is negative. Estimates from rolling window method show that FDI and RIR are negatively related to economic growth for the years 1987, respectively. The results may help policymakers formulate effective financial sector policies as a tool to promote economic growth in Bangladesh.

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Section: Construction Of Financial Development Indexmentioning

confidence: 99%

Does Financial Development Hamper Economic Growth: Empirical Evidence From Bangladesh

Hye

Islam

2012

Journal of Business Economics and Management

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“…La Porta et al (2002) examined the ownership structure of banks in 92 countries and found that higher government ownership of banks resulted in lower per capita GDP growth even when initial financial intermediation development had a positive and significant effect. Nair (2004) suggested a significant negative impact of financial liberalization index (FLI) on the household saving rate. Mattoo et al (2006) examined openness in financial services having a positive and significant effect on economic growth in a sample of 59 countries.…”

Section: Introductionmentioning

confidence: 99%

Impact of financial liberalization on agricultural growth: a case study of Pakistan

Hye

Wizarat

2011

China Ag Economic Review

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PurposeThe purpose of this paper is to develop a financial liberalization index (FLI) and evaluate its impact on agricultural growth.Design/methodology/approachThe study uses the autoregressive distributed lag approach to determine the long run and short coefficients.FindingsThe empirical results show that FLI affects agricultural growth positively in the short and the long run; but real interest rate positively affects agricultural growth in the short run and negatively in the long run.Originality/valueWhile previous research focuses on overall economic growth, this paper evaluates the impact of financial liberalization on the agricultural sector.

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“…They do find a positive association of financial development variables with expenditures on durable goods, but the economic size of this relationship is small. Nair (2006), on the other hand, finds a statistically and economically significant effect of financial liberalization on household consumption.…”

Section: Evidence From Household Survey Datamentioning

confidence: 98%

Rebalancing Growth in Asia*

Prasad

2011

International Finance

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While many Asian emerging markets now run current account surpluses, reducing Asia's overall excess savings is largely about modifying growth patterns and saving-investment balances in China. China accounts for about half of the total GDP in Asia ex-Japan but over two-thirds of the region's total savings and current account surplus. One feature shared by all Asian economies is the surge in corporate savings over the past decade. Household saving rates, by contrast, have increased in China and India but declined sharply in Korea. Contrary to the popular characterization of China as relying on export-led growth, GDP growth in China has been dominated by investment growth. A comparative analysis reveals that China's growth model has resulted in its having the lowest share of private consumption to GDP in the region and the lowest rate of employment growth relative to GDP growth.

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Financial Sector Liberalization and Household Savings in India

Cited by 12 publications

References 57 publications

Does Financial Development Hamper Economic Growth: Empirical Evidence From Bangladesh

Does Financial Development Hamper Economic Growth: Empirical Evidence From Bangladesh

Impact of financial liberalization on agricultural growth: a case study of Pakistan

Rebalancing Growth in Asia*

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