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Structural Problems in Financing Development: Issues Relating to India

  • Santonu Basu
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This paper argues that the process of financing development in India increased the fragility of the financial market. Consequently, the need arose for the government to implement policies that would reduce that fragility, and also to introduce strong enforceable bankruptcy laws, in order to prevent the emergence of corruption. It appears that the recent capital market reform did not give adequate attention to reducing the fragility of the financial market.

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Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 20 (2006)
Issue (Month): 1 ()
Pages: 85-101

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Handle: RePEc:taf:irapec:v:20:y:2006:i:1:p:85-101
DOI: 10.1080/02692170500362793
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  8. Roubini, Nouriel & Sala-i-Martin, Xavier, 1992. "Financial repression and economic growth," Journal of Development Economics, Elsevier, vol. 39(1), pages 5-30, July.
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  17. Arestis, Philip & Demetriades, Panicos O, 1997. "Financial Development and Economic Growth: Assessing the Evidence," Economic Journal, Royal Economic Society, vol. 107(442), pages 783-99, May.
  18. Philip Arestis, 2002. "Financial crisis in Southeast Asia: dispelling illusion the Minskyan way," Cambridge Journal of Economics, Oxford University Press, vol. 26(2), pages 237-260, March.
  19. Michael B. Devereux & Gregor W. Smith, 1991. "International Risk Sharing and Economic Growth," Working Papers 829, Queen's University, Department of Economics.
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  22. Basu, Santonu, 1989. "Deregulation: Small Business Access to the Capital Market--Theoretical Issues with Special Reference to Australian Bank Finance," Australian Economic Papers, Wiley Blackwell, vol. 28(52), pages 141-59, June.
  23. Cho, Yoon Je, 1988. "The effect of financial liberalization on the efficiency of credit allocation : Some evidence from Korea," Journal of Development Economics, Elsevier, vol. 29(1), pages 101-110, July.
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  26. Santonu Basu, 2004. "Financial fragility: is it rooted in the development process? An examination with special reference to the South Korean experience," Chapters, in: Neo-Liberal Economic Policy, chapter 3 Edward Elgar Publishing.
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