India’s Increased International Integration and the Financial Crisis: Has India Become More Prone to External Shocks?
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25560.
Date of creation: 18 Jun 2010
Date of revision:
Integration; Crisis; BOP; Fiscal stimulus;
Find related papers by JEL classification:
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G01 - Financial Economics - - General - - - Financial Crises
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-09 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frederic S. Mishkin, 2007.
"Is Financial Globalization Beneficial?,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 39(2-3), pages 259-294, 03.
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