Logo
Munich Personal RePEc Archive

Financial Liberalization, Development and Industrial Growth: Evidence from India

Hosamane, Manjappa and Rajanna, Niranjan (2010): Financial Liberalization, Development and Industrial Growth: Evidence from India. Published in: Business Perspectives , Vol. 12, No. 1 (2010): pp. 1-15.

[thumbnail of MPRA_paper_55624.pdf]
Preview
PDF
MPRA_paper_55624.pdf

Download (237kB) | Preview

Abstract

Abstract: Development economists have long recognized the role of the financial system in the process of economic development. Financial institutions and markets anticipate future growth opportunities, were financial development tends to accelerate growth through new firm formation, increasing access to external financing and boost firm growth. Using Industry level time series data, following Rajan and Zingales (1998), methodology we empirically examined the links between financial sector development, financial structure and industry growth for the post-reform period. The results suggest a positive influence of financial development (FD), and negative influence of financial structure (FS), on the rate of growth of value added of the Industries. One of the contributions of this study is the examination of the influence of industry competitiveness (export intensity and import intensity) and financial liberalization on industry growth where export oriented industries are relatively more dependent on external finance for their growth. Regarding liberalization the results doesn’t show any direct effect on industry growth in value added.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.