Macroeconomic Effects of Capital Account Liberalisation in India

Autor:	Deepti Taneja, Nasim Ansari
Rok vydání:	2016
Předmět:	050208 finance Exchange rate Liberalization Cointegration 0502 economics and business 05 social sciences Economics International economics Monetary economics 050207 economics Capital flows Capital account Financial development
Zdroj:	The Indian Economic Journal. 64:23-42
ISSN:	2631-617X 0019-4662
DOI:	10.1177/0019466216652720
Popis:	In this article, we examined the macroeconomic effects of capital account liberalisation in India. Econometric analyses based on annual data for the period 1993–1994 to 2012–2013 reveal a number of interesting observations. The conclusion drawn is that there exist a unique long-run relationship between economic growth and capital account openness. The long-run relationship was also observed between capital account openness and gross domestic capital formation (GDCF), and between capital account openness and real effective exchange rate (REER). Results of the cointegration test are indicative of the fact that the increased inflows of private foreign capital in India since 1993 might account for the disturbances in the equilibrium relationship between numbers of macroeconomic variables. From the causality analysis it was observed that capital openness must be preceded by trade openness and a more developed domestic financial system. JEL Classification: F10, F15, F32, F36, O43, G21
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::da6fcabb7a9d4c9eb02f3411ea427e23 https://doi.org/10.1177/0019466216652720 Zobrazit plný text záznamu