Ghosh, Saibal (2009): Does Financial Outreach Engender Economic Growth? Evidence from Indian States. Published in: Journal of Indian Business Research , Vol. 3, No. 2 (April 2011): pp. 74-99.
Download (253kB) | Preview
The paper makes a systematic attempt to ascertain the nexus between finance and growth at the sub-national level for an emerging economy. Using data on major states in India for 1973 to 2004, the analysis indicates significant regional divergences in financial outreach across states, as also in terms of their income characteristics. As well, while indicators of financial outreach have exhibited improvements, their relationship with growth appears to have become tenuous, especially over the reforms period.
|Item Type:||MPRA Paper|
|Original Title:||Does Financial Outreach Engender Economic Growth? Evidence from Indian States|
|Keywords:||inclusion; sub-national; economic growth; India|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages|
|Depositing User:||Saibal Ghosh|
|Date Deposited:||07. Jul 2011 12:57|
|Last Modified:||05. Jan 2016 14:07|
Aghion, P., R.Burgess., S.Redding and F.Zilibotti (2003). Entry liberalization and inequality in industrial performance. Journal of the European Economic Association 2/3, 291-302.
Ahluwalia, M.S. (2002). State level performance under economic reforms in India. In A.O.Krueger (Ed.), Economic Policy Reforms and the Indian Economy, Oxford University Press: New Delhi.
Bajpai, N., and J.D.Sachs (1999). The progress of policy reform and variations in performance at the sub-national level in India. Discussion Paper No.730, Harvard Institute for International Development, Harvard University. Cambridge: MA.
Barro, R. J. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics 51, 407-43.
Barro, R. J. (1997). Determinants of economic growth: A cross-country empirical study. Cambridge, MA: MIT Press.
Barro, R. J., and Xavier Sala-i-Martin (1995). Convergence. Journal of Political Economy 100, 223-51.
Barro, R. J., and Xavier Sala-i-Martin (1999). Economic Growth. Cambridge< Massachusetts: MIT Press.
Beck, T, A. Demirguc-Kunt and R. Levine (2007). Reaching out: Access to and use of banking services across countries. Journal of Financial Economics 85, 234-66.
Beck, T., A. Demirguc Kunt, L .Laeven and V. Maksimovic (2006a). The determinants of financing obstacles. Journal of International Money and Finance 25, 932-52.
Beck, T., A. Demirguc Kunt, and M .S. Martinez Peria (2006b). Banking services for everyone? Barriers to bank access and use around the world. World Bank Policy Research Working Paper 4079. World Bank: Washington DC.
Blundell, R., and S.Bond (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 87, 115-43.
Burgess, R., and R. Pande (2005). Do rural banks matter? Evidence from the Indian social banking experiment. American Economic Review 95, 780-95.
Carlino, G., and R. Defina (1998). The differential regional effects of monetary policy. Review of Economics and Statistics 80, 572-87.
Chairlone, S., and S. Ghosh (2008). Indian banking system. In P. Bongini, S. Chairlone and G. Ferri (Eds.) Emerging Banking Systems. Palgrave McMillan: UK (forthcoming).
Demirgúc-Kunt, A., and V.Maksimovic (1998). Law, finance and firm growth. Journal of Finance 53, 2107-37.
Easterly, W., and R. Levine (2002). It’s not factor accumulation: Stylized facts and growth models. Central Bank of Chile Working Paper No.164 (June). Santiago: Chile.
EPW Research Foundation (2003). Domestic Product of States of India: 1960-61 to 2000-01. EPW: Mumbai.
Ghosh, S. (2010). Determinants of banking outreach: An empirical assessment of Indian states. Journal of Developing Areas (forthcoming).
Government of India (2002). National Human Development Report. Planning Commission, Government of India: New Delhi.
Government of India (2008a). Ministry of Environment and Forests (Legislations on Environment, Forests and Wildlife). Available at <http:// envfor.nic.in>
Government of India (2008b). Report of the Committee on Financial Inclusion (Chairman: Dr. C. Rangarajan). Government of India: New Delhi.
Government of India. Economic Survey. New Delhi (various years).
Government of India. Statistical Abstract of India. New Delhi (various years).
Islam, N. (1995). Growth empirics: A panel data approach. Quarterly Journal of Economics 110, 1127-70.
Kendall, J., N. Mylenko and A. Ponce (2010). Measuring financial access around the world. Policy Research Working Paper No. 5253, The World Bank: Washington DC.
Kochhar, K., U. Kumar, R. Rajan, A. Subramanium and I. Tokatlidis (2006). India’s pattern of development: What happened, what follows? Journal of Monetary Economics 53, 981-1019.
Levine, R. (2005). Finance and growth: theory and evidence, In P. Aghion and S. Durlauf (Eds.) Handbook of Economic Growth. Elsevier Science: Netherlands.
Lucas, R.E. (1988). On the mechanics of economic development. Journal of Monetary Economics 22, 3-42.
Nachane, D.M., P.Ray and S.Ghosh (2002). Does monetary policy have differential state-level effects? An empirical evaluation. Economic and Political Weekly 47, 4723-28.
Nagaraj, R., A. Varoudakis and M. A. Veganzones (2000). Long-run growth trends and convergence across Indian states. Journal of International Development 12, 45-70.
Nosbusch, Y. (1999). Convergence across regions: Evidence from India. Quantitative Economics Project, London School of Economics: UK.
Rajan, R.G. and L. Zingales (1998). Financial dependence and growth. American Economic Review 88, 559-86.
Reserve Bank of India (1954). Report of the Committee on all India rural credit survey (Chairman: A.D.Gorwala). RBI: Mumbai.
Reserve Bank of India (2004) Handbook of Statistics on State Government Finances. RBI: Mumbai.
Reserve Bank of India (2007). Handbook of Statistics on Indian Economy. RBI: Mumbai.
Reserve Bank of India (a). Basic Statistical Returns of Scheduled Commercial Banks in India (various years). RBI: Mumbai.
Reserve Bank of India (b). Statistical Tables Relating to Banks in India (various years). RBI: Mumbai.
Rodrik, D., and A.Subramanium (2004). From ‘Hindu’ growth to productivity surge: The mystery of the Indian growth transition. CEPR Discussion Paper No.4371, Center for Economic Policy Research: UK.
Sachs, J.D., N.Bajpai and A.Ramaiah (2002). Understanding regional economic growth in India. CID Working Paper No.88, Center for International Development, Harvard University. Cambridge: MA.
Topalova, P. (2008). India: Is the rising tide lifting all boats? IMF Working Paper No. 54. IMF: Washington DC.
Trivedi, K. (2006). Educational human capital and levels of income: Evidence from the states of India 1965-92. Journal of Development Studies 42, 1350-78.
Wachtel, P., I. Hasan and M. Zhou (2006). Institutional development, financial deepening and economic growth; Evidence from China. Bank of Finland Discussion Paper No. 12. Finland: Helsinki
World Bank (2005). State fiscal reforms in India: Progress and prospects. Macmillan India Ltd.