Financial Development and Growth in India: A Growing Tiger in a Cage?

March 1, 2008

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Format: Chicago

Hiroko Oura. Financial Development and Growth in India: A Growing Tiger in a Cage?, (USA: International Monetary Fund, 2008) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the efficiency of the different segments of India's financial system using firm-level data on corporate financing patterns. Firms are increasingly relying on external funds to finance their investment in most recent years. Empirical analyses indicate that (1) the financial system in India is not channeling funds into industries with higher external finance dependence; (2) the debt financing system does not allocate funds according to firms' external finance dependence, while equity financing system does; and (3) firms in an industry that are more dependent on external finance grow more slowly.

Subject: Corporate sector, Debt financing, Securities markets, Stock markets, Stocks

Keywords: Firm, Firm growth, Fund, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/079
Stock No:

WPIEA2008079
ISBN:

9781451869408
ISSN:

1018-5941

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