Liberalization and India’s Business Cycle Synchronization with the US
In the wake of India’s liberalization since the early 1990s, the country’s monetary and trade integration with the leading economy, the US, has increased more than ever before. While literature on whether financial integration leads to greater business cycle synchronization is ambiguous, this study finds that India’s business cycle has increasingly been synchronized with the US counterpart as liberalization has intensified over time. Since US output fluctuations are arguably exogenous to India, this synchronization, as estimated in impulse responses, variance decompositions, correlations, and GARCH models, can be viewed as business cycle transmission from the US to India. The pattern of movements in monetary, trade, and output variables based on gradually improving openness suggests that India’s augmenting business cycle synchronization with the US is mainly attributable to the channels of trade and monetary policy.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 44 (2009)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
Web page: http://www.ierdse.org/
More information through EDIRC
|Order Information:|| Web: http://www.ierdse.org/ Email: |
When requesting a correction, please mention this item's handle: RePEc:dse:indecr:0008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pami Dua)
If references are entirely missing, you can add them using this form.