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Financial Sector Reforms in Developing Countries: The Indian Experience

17 Pages Posted: 31 Dec 2002  

T.G. Arun

University of Manchester - Institute for Development Policy and Management (IDPM)

J.D. Turner

Queen's University of Belfast

Abstract

This study is based on the premise that the success/failure of financial sector reforms depends heavily on country specific factors and makes an attempt to examine these factors in the Indian context. The financial sector reforms analysed in this paper include the deregulation of interest rates, increasing competition and foreign ownership, and the introduction of financial supervision. We argue that an economic rationale for a gradualist approach to financial reform is that it is stability enhancing. Furthermore, we suggest that India's complex political economy has resulted in a gradual approach to reform, and this approach has been successful along the dimension of banking stability.

Suggested Citation

Arun, T.G. and Turner, J.D., Financial Sector Reforms in Developing Countries: The Indian Experience. The World Economy, Vol. 25, pp. 429-445, 2002. Available at SSRN: https://ssrn.com/abstract=309533

T.G. Arun (Contact Author)

University of Manchester - Institute for Development Policy and Management (IDPM) ( email )

Manchester M13 9GH
United Kingdom

J.D. Turner

Queen's University of Belfast ( email )

School of Management & Economics
Belfast BT7 1NN
Northern Ireland

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