Article ID Journal Published Year Pages File Type
991729 World Development 2009 13 Pages PDF
Abstract

SummaryThis paper examines the role of financial sector policies in determining private investment in the economies of India and Malaysia. The results suggest that significant directed credit programs favoring certain priority sectors tend to discourage private capital formation in both countries. Interest rate controls appear to have a positive impact on private investment, with the effect being more pronounced in Malaysia. While high reserve and liquidity requirements exert a negative influence on private investment in India, the effect is found to be positive in Malaysia.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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