The Impact of the Asian Crisis on China and India

A. S. Bhalla and D. M. Nachane

Chapter 5 in Market or Government Failures?, 2001, pp 92-126 from Palgrave Macmillan

Abstract: Abstract Ever since the outbreak of the Asian financial crisis, speculation has been rife about the likelihood of the ‘contagion’ spreading and the extent of its possible spread. Policy makers in different countries have also been preoccupied with examining what measures could be taken to forestall a similar fate befalling their respective economies. This chapter addresses these issues with respect to the two Asian giants, India and China, which share certain common features such as size and geographical proximity to the crisis region, but differ widely in other respects. Apart from the well-known differences in their political systems and the role of markets, at least two other divergent features stand out. Firstly, attitudes to foreign investment in the recent past have differed sharply. Whereas India has been extremely cautious about for­eign direct investment (FDI), but relatively open to foreign portfolio investment (FPI), the opposite seems to have been the case in China. Secondly, the Indian banking and financial system has evolved to a stage of maturity and sophistication that does not seem evident in China.

Keywords: Foreign Direct Investment; Credit Union; Capital Inflow; Foreign Bank; Current Account Deficit (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62920-2_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230629202

DOI: 10.1057/9780230629202_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().