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Has India emerged? Business cycle facts from a transitioning economy

Author

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  • Ghate, Chetan
  • Pandey, Radhika
  • Patnaik, Ila

    (National Institute of Public Finance and Policy)

Abstract

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 mar- ket 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.

Suggested Citation

  • Ghate, Chetan & Pandey, Radhika & Patnaik, Ila, 2011. "Has India emerged? Business cycle facts from a transitioning economy," Working Papers 11/88, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:11/88
    Note: Working Paper 88, 2011
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. On Powerful Macroeconomic Concepts: Consumption Smoothing
      by paragwaknis in Musings of the Sorts on 2013-03-29 06:04:36

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    Cited by:

    1. Rudrani Bhattacharya & Ila Patnaik, 2016. "Financial Inclusion, Productivity Shocks, and Consumption Volatility in Emerging Economies," World Bank Economic Review, World Bank Group, vol. 30(1), pages 171-201.
    2. Muhammad Ali Choudhary & Farooq Pasha, 2013. "The RBC View of Pakistan: A Declaration of Stylized Facts and Essential Models," SBP Working Paper Series 56, State Bank of Pakistan, Research Department.
    3. Parag, Waknis, 2012. "Political economy of sub-national spending in India," MPRA Paper 36813, University Library of Munich, Germany.
    4. Mitra, Shalini, 2013. "Informality, financial development and macroeconomic volatility," Economics Letters, Elsevier, vol. 120(3), pages 454-457.
    5. Rajesh, Raj & Bharti, Nalin, 2016. "Monsoon Fluctuation And Consumption Expenditure In India," Journal of Central European Green Innovation, Karoly Robert University College, vol. 4(1), pages 1-15.

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    More about this item

    Keywords

    Macroeconomics ; Real business cycles ; Emerging market DSGE models ; Volatility and growth;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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