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The Saving-Investment Dynamics And Financial Sector Reforms in India


  • Ang, James


While many developing countries have reformed their financial systems over the last few decades, how an increased level of financial liberalization affects the saving-investment relationship remains unclear. This paper examines the dynamic relationship between the domestic saving and investment rates in India by controlling for the level of financial liberalization. Using data over the period 1950-2005, the results indicate that greater financial liberalization enables more domestic resources to be channeled to investment activities.

Suggested Citation

  • Ang, James, 2009. "The Saving-Investment Dynamics And Financial Sector Reforms in India," MPRA Paper 14498, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14498

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    References listed on IDEAS

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    Cited by:

    1. Smruti Ranjan BEHERA, 2015. "Saving-investment Dynamics and capital Mobility in the BRICS," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 5-16.
    2. repec:wsi:serxxx:v:62:y:2017:i:02:n:s0217590815500976 is not listed on IDEAS

    More about this item


    Saving; Investment; Financial Liberalization; India;

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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