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Has India emerged? Business cycle stylized facts from a transitioning economy
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In this paper, the authors present a comprehensive set of stylised facts for business cycles in India from 1950 - 2009, and find that the nature of the business cycle has changed dramatically after India's liberalisation reforms in 1991.Abstract:
This paper presents a comprehensive set of stylised facts for business cycles in India from 1950 - 2009. We find that the nature of the business cycle has changed dramatically after India's liberalisation reforms in 1991. In particular, after the the mid 1990s, the properties of India's business cycle has moved closer in key respects to select advanced countries. This is consistent with India's structural transformation from a pre-dominantly agricultural and planned developing economy to a more market based industrial-income economy. We also identify in what respects the behaviour of the Indian business cycle is different from that of other advanced economies, and closer to that of other less developed economies. This is the first exercise of this kind to generate an exhaustive set of stylised facts for India using both annual and quarterly data.read more
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Emerging Economy Business Cycles: Financial Integration and Terms of Trade Shocks Prepared by Ila Patnaik, Rudrani Bhattacharya, Madhavi Pundit 1
TL;DR: The authors analyzed the extent to which financial integration impacts the manner in which terms of trade affect business cycles in emerging economies using a s mall open economy model and showed that as capital account openness increases in an economy that faces trade shocks, business cycle volatility reduces.