Why Demonetize the Indian Economy?

• Autorzy: Augendra Bhukuth , Bernard Terrany
• Języki publikacji: EN

Abstrakty

EN

This paper is a conceptual analysis of demonetization. The main aim of this paper is to analyze the reason why a government would like to demonetize its economy. The main reasons for demonetizing an economy are to modernize the banking sector, to provide banks with liquidity, to reduce the importance of the informal financial sector, to give people the opportunity to hold bank accounts, which in turn gives people access to the credit market. This is part of the digitalization of the economy which is a part of the demonetization policy. The other aim of this policy is to fight against inflation and attract foreign direct investment. The make-in policy and demonetization policy are interrelated. (original abstract)

Słowa kluczowe

EN

Inflation; Foreign investment; Direct investments; Economic policy; Banking sector; Demonetization

PL

Inflacja; Inwestycje zagraniczne; Inwestycje bezpośrednie; Polityka gospodarcza; Sektor bankowy; Demonetyzacja

• Czasopismo: Journal of International Studies
• Rocznik: 2019
• Tom: 12
• Numer: nr 4
• Strony: 9--19

Twórcy

autor

Augendra Bhukuth

• ITSMI School of Management, Paris, France

autor

Bernard Terrany

• Ipag Business School, Paris, France

Bibliografia

• Aitken, B., & Harrison, A.E. (1999). Do domestic firms benefit from foreign direct investment?. The American Economic Review, 89(3), 605-618.
• Allen, F., Chakrabarti, R., De, Sankar, Qian, J., & Qian, M. (2012). Financing firms in India. Journal of Financial Intermediation, 21(3), 409-445.
• Athreye, S., & Kapur, S. (2001). Private Foreign Investment in India: Pain or Panacea?. The World Economy, 24, 399-424.
• Badarinza, C., Balasubramaniam, V., & Ramadorai, T. (2016). The Indian Household Savings Landscape. India Policy Forum/NCAER, July 12-13 2016.
• Bhatnagar, H. (2017). Demonetization to Digitalization: A Step Toward Progress. Management and Economics Research Journal, 3, 11-15.
• Bhat, K.S., Sundari, T.C.U., & Raj, K.D. (2004). Causal Nexus Between Foreign Direct Investment and Economic Growth in India. Indian Journal of Economics, 85(337), 171-185.
• Bhatt, P.R. (2013). China's Exports and Foreign Direct Investment. Applied Economics and International Development, 13(2), 187-200.
• Blomström, M., & Kokko, A. (2003). The Economics of Foreign Direct Investment Incentives. EIJS Working Papers, 168, Stockholm, Sweden.
• Brunnermeier, M. K. (2009) Deciphering the Liquidity and Credit Crunch 2007-2008. Journal of Economic Perspective, 23(1), 77-100.
• Buckley, J.P., Clegg, J., & Wan, C. (2006). Inward FDI and Host Country Productivity: Evidence from China's Electronic Industry. Transnational Corporation, 15(1), 13-37.
• Chakraborty, C., & Basu, P. (2002). Foreign Direct Investment and Growth in India: A Cointegration Approach. Applied Economics, 34(9), 1061-1073.
• Chakraborty, C., & Nunnenkamp, P. (2008). Economics Reforms, FDI, and Economic Growth in India: A Sector Level Analysis. World Development, 36(7), 1192-1212.
• Chavan, P., & Gambacorta, L. (2016). Bank Lending and Loan Quality: The Case of India.BIS Working Paper, No. 595.
• Dash, A. (2017). A Study on Socio Economic Effect of Demonetization in India. International Journal of Management and Applied Science, 3(3), 13-15.
• Dollar, D., & Kraay, A. (2002). Growth is Good for the Poor. Journal of Economic Growth, 7(3), 1995-225.
• Dupasquier, C., & Osakwe, P.N. (2005). Foreign Direct Investment in Africa: Performance, Challenges and Responsibilities. Journal of Asian Economics, 17(2), 241-260.
• Fontagné, L., & Lorenzi, J.H. (2005). Désindustrialisation, Délocalisation. La Documentation Française, Paris, 2005.
• Ganesan, G., & Gajendrayanagam, B. (2017). Impact of Demonetization on Indian Economy. International Journal of Applied Research, 3(9), 433-436.
• Guérin, I., Lanos, Y., Michiels, S.,Nordman, C.J., & Venkatasubramanian, G. (2017). Insights on Demonetisation from Rural India: Understanding Social Networks and Social Protection. Economic and Political Weekly, 52(52), 44-53.
• Hoff, K., & Stiglitz, J.E. (1997). Moneylenders and Bankers: Price-Increasing Subsidies in a Monopolistically Competitive Market. Journal of Development Economics, 52(2), 429-462.
• Kabelwa, G. (2004). South African FDI in East Africa: The Case of Tanzania. Dar es Salaam. ESRF, Globalization and East Africa, Working Paper Series No. 10.
• Klomp, J., & de Haan, J. (2015). Bank Regulation and Financial Fragility in Developing Countries: Does Bank Structure Matter?. Review of Development Finance, 5(2015), 82-90.
• Kumar, R., & Vashisht, P. (2011). Crisis, Imbalances, and India. ADBI Working Paper 272. Tokyo: Asian Development Bank Institute. http://www.adbi.org/workingpaper/2011/03/29/4497.crisis.imbalances.india/
• Li, B., Xiong, W., Chen, L., & Wang, Y. (2017). The Impact of the Liquidity Coverage Ratio on Money Creation: A Stock-Flow Based Dynamic Approach. Economic Modelling, 67(2017), 193-202.
• Mali, V. (2017). Demonetization: A Step towards Modified India. International Journal of Commerce and Management Research, 2(12), 35-36.
• McLeay, M., Radia, A., & Thomas, R. (2014). Money Creation in the Modern Economy. Quarterly Bulletin, 2014, Q1, 1-14.
• Mohan, R. (2006). Agricultural Credit in India: Status, Issues and Future Agenda. Economic and Political Weekly, 41(11), 18-24.
• Parmar, B. (2015). Small, Medium Sector Face Credit Crunch. The Hindu, Business Line, 8 December 2015, www.thehindubusinessline.com/money-and-banking/small-medium-sectors-face-credit-crunch/article7962319.ece
• Pradhan, N. (2013). Persistence of Informal Credit in Rural India: Evidence from 'All-India Debt and Investment Survey' and Beyond. MPRA Paper, No. 80381, https://mpra.ub.uni-muenchen.de/80381/
• Pwc. (2017). Family Business Survey2012-2013. Pwc.in.
• Ramdurg, A.I., & Basavaraj, C.S. (2016). Demonetization: Redefining Indian Economy. International Journal of Commerce and Management Research, 2(12), 7-12
• Reserve Bank of India (RBI). (2017). Macroeconomic Impact of Demonetization- A Preliminary Assessment. Reserve Bank of India, 10 March 2017, India
• Rutihinda, C. (2007). Impact of globalization on small and medium size firms in Tanzania. Hawaii: ABR and TLC Conference Proceedings.
• Shimizu, S. (2010). The State of the Indian Banking System and Its Role in India's High Growth. Pacific Business and Industries, 10, No 36, 2010
• Shirley, A.J. (2017). Impact of Demonetization in India. International Journal of Trend in Research and Development, Special issue, 20-23, www.ijtrd.com.
• Simon, D.G., & Hitt, M.A. (2003). Managing Resources: Linking Unique Resources, Management, and Wealth Creation in family Firms. Entrepreneurship Theory and Practice, 27(4), 339-358.
• Singhal, R., Sawai, Kumar, Subham, J., & Rajat, N. (2017). Demonetization in India. International Journal of Engineering and Management Research, 7(2), 137-138.
• Stiglitz, J.E., Weiss, A. (1981). Credit Rationing in Markets with Imperfect Information. The American Economic Review, 71(3), 393-410.
• Swain, R.B. (2002). Credit Rationing in Rural India. Journal of Economic Development, 27(2), 1-20.
• Timberg, T., & Aiyar, C.V. (1980). Informal Credit Markets in India. Economic and Political Weekly, February Annual Number, 1980.
• Wang, W., Fu, H., & Wang, Y. (2017). Money Creation and Circulation in a Credit Economy. Physica A, 465(2017), 425-437.
• Wehinger, G. (2013). SMEs and the Credit Crunch: Current Financing Difficulties, Policy Measures and a Review of Literature. OECD Journal: Financial Market Trends, 2013/2.
• Werner, R. A. (2016). A Lost Century in Economics: Three Theories of Banking and the Conclusive Evidence. International Review of Financial Analysis, 46(2016), 361-379.
• Werner, R.A. (2014). How Do Banks Create Money, and Why Can Other Firms Not Do the Same? An Explanation of Coexistence of Lending and Deposit taking. International Review of Financial Analysis, 36(2014), 71-77.
• World Bank. (2017). Innovative Early Stage Financing for SMEs in India. August 10, 2017, http://www.worldbank.org/en/news/feature/2017/08/10/innovative-early-stage-financing-for-smes-in-india

Identyfikatory

DOI

10.14254/2071-8330.2019/12-4/1