The Future of Financial Liberalization in South Asia

Ashima Goyal

Finance Working Papers from East Asian Bureau of Economic Research

Abstract: The paper defines financial liberalization, distinguishing between liberalization of domestic financial markets and capital account convertibility. It then examines the stages and the strategy of Indian financial reform. The Indian strategy followed a well thought out sequence whereby full capital account liberalization was to come after deepening domestic markets, and improving government finances. One alone is dangerous without the others. The experience of the global crisis has validated the Indian strategy and also shown that foreign entry has benefits but cannot resolve all issues. Deepening domestic markets and better domestic and international regulation is a necessary prerequisite for full convertibility. The direction of future liberalization should be such as meets Indian needs of financial inclusion, infrastructure finance, and domestic market deepening.

Keywords: liberalization; capital account convertibility; regulation; inclusion; markets (search for similar items in EconPapers)
JEL-codes: F36 G18 (search for similar items in EconPapers)
Date: 2010-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.eaber.org/node/22051 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051 [301 Moved Permanently]--> https://www.eaber.org/node/22051)

Related works:
Working Paper: The Future of Financial Liberalization in South Asia (2012)
Working Paper: The Future of Financial Liberalization in South Asia (2010)
Working Paper: The Future of financial liberalization in South Asia (2010)
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:eab:financ:22051

Access Statistics for this paper

More papers in Finance Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().