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Has India emerged? Business cycle stylized facts from a transitioning economy

  • Chetan Ghate

    ()

    (Indian Statistical Institute, New Delhi)

  • Radhika Pandey

    ()

    (National Institute of Public Finance and Policy)

  • Ila Patnaik

    ()

    (National Institute of Public Finance and Policy)

This paper presents a comprehensive set of stylised facts for business cycles in India from 1950 - 2009. We find that the nature of the business cycle has changed dramatically after India's liberalisation reforms in 1991. In particular, after the the mid 1990s, the properties of India's business cycle has moved closer in key respects to select advanced countries. This is consistent with India's structural transformation from a pre-dominantly agricultural and planned developing economy to a more market based industrial-income economy. We also identify in what respects the behaviour of the Indian business cycle is different from that of other advanced economies, and closer to that of other less developed economies. This is the first exercise of this kind to generate an exhaustive set of stylised facts for India using both annual and quarterly data.

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File URL: http://www.isid.ac.in/~pu/dispapers/dp11-05.pdf
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Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 11-05.

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Length: 30 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:ind:isipdp:11-05
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  1. Ambler, Steve & Cardia, Emanuela & Zimmermann, Christian, 2004. "International business cycles: What are the facts?," Journal of Monetary Economics, Elsevier, vol. 51(2), pages 257-276, March.
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  15. Canova, Fabio, 1998. "Detrending and business cycle facts," Journal of Monetary Economics, Elsevier, vol. 41(3), pages 475-512, May.
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  17. M. Ayhan Kose & Christopher Otrok & Charles H. Whiteman, 2003. "International Business Cycles: World, Region, and Country-Specific Factors," American Economic Review, American Economic Association, vol. 93(4), pages 1216-1239, September.
  18. Hilde Christiane BjÛrnland, 2000. "Detrending methods and stylized facts of business cycles in Norway - an international comparison," Empirical Economics, Springer, vol. 25(3), pages 369-392.
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