Sircar, Jyotirmoy (2010): India’s Increased International Integration and the Financial Crisis: Has India Become More Prone to External Shocks?
Download (545kB) | Preview
This paper looks at the impact of the global financial crisis on the Indian Economy via the three potential channels of contagion namely the trade channel, the financial channel and the confidence channel. We do so by analyzing the quarterly data of India’s Balance of Payments (BOP) for the time period 2007-2008 to 2009-2010. We come to the conclusion that India has become more prone to external shocks which is but natural with increased integration with the world economy and particularly financial integration. However the economy was already experiencing a downturn two quarters before the onset of the effects of the crisis on the Indian Economy and hence, at best, we can say that due to the crisis the downturn got accentuated for a few more quarters. The economy also seems to have recovered within a short period of time.
|Item Type:||MPRA Paper|
|Original Title:||India’s Increased International Integration and the Financial Crisis: Has India Become More Prone to External Shocks?|
|English Title:||India’s Increased International Integration and the Financial Crisis: Has India Become More Prone to External Shocks?|
|Keywords:||Integration; Crisis; BOP; Fiscal stimulus|
|Subjects:||F - International Economics > F3 - International Finance > F32 - Current Account Adjustment; Short-Term Capital Movements
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
G - Financial Economics > G0 - General > G01 - Financial Crises
|Depositing User:||Jyotirmoy Sircar|
|Date Deposited:||01. Oct 2010 00:24|
|Last Modified:||12. Feb 2013 18:46|
(2009‐10). Economic Survey. New Delhi: GOI.
Ghosh, J., & Chandrasekhar, C. (2009). The Global Crisis and the Indian Economy. Cambridge Journal of Economics , 33 (Special Issue), 725‐739.
http://dbie.rbi.org.in/InfoViewApp/listing/main.do?appKind=InfoView&service=%2FInfoViewApp%2Fco mmon%2FappService.do. (n.d.). Retrieved March 6, 2010, from rbi.org.in: http://dbie.rbi.org.in/InfoViewApp/listing/main.do?appKind=InfoView&service=%2FInfoViewApp%2Fco mmon%2FappService.do
Lowenstein, R. (2008). Triple‐A Failure. In M. Lewis (Ed.), Panic: The Story of Modern Financial Insanity (pp. 316‐329). London: Penguin Books.
Mishkin, F. S. (2005). Is Financial Globalization Beneficial? NBER WORKING PAPER (Working Paper 11891).
Mohan, T. R. (2009). The Impact of the Crisis on the Indian Economy. In Gloabal Economic & Financial Crisis (pp. 171‐190). Hyderabad: Orient Blackswan & Sameeksha Trust.
Nachane, D. M. (2009). The Fate Of India Unincorporated. In Global Economic and financial Crisis (pp. 191‐212). Hyderabad: Orient Blackswan & Sameeksha Trust.
Rakshit, M. (2009). India Amidst the Global Crisis. In Global Economic and financial Crisis (pp. 137‐170).Hyderabad: Orient Blackswan & Sameeksha Trust.
Rodrik, D. (1998). Who needs capital account convertibility?
Singh, D. S. (2009). Global Financial Crisis and Indian Economy: Impact Assessment, Policy Responses and Recovery.
Subbarao, D. (2009, Februray 18). Impact of the Global Financial Crisis on India: Collateral Damage and Response.
Subramanian, A. (2009, March 28). Preventing and Responding to the Crisis of 2018. Economic and Political Weekly .
Varma, J. R. (2009). Indian Financial Sector and the Global Financial Crisis. Vikalpa , 34 (3), 25 ‐ 34.
Williamson, J. (2006, May 13). Why capital account convertibility in India is still premature? Economic & Political Weekly , 1848‐1850.