Have policy initiatives in emerging Asian economies improved firms' access to external finance?
Udichibarna Bose , Ronald MacDonald , Serafeim Tsoukas
Posted on: 28 Feb 2018
Topics:   Finance
Tags:   Asia

Since the 1997-98 Asian financial crisis, policymakers in Asia have initiated a series of reforms aimed at developing and strengthening the regional financial markets. This column provides new evidence on the response of corporate financial choices to the introduction of these policy initiatives, in terms of external finance access and investment.
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Do stock exchange listings help ease financial constraints of SMEs?
Nidhi Aggarwal , Susan Thomas
Posted on: 07 Feb 2018
Topics:   Finance

Small and medium enterprises (SMEs) are viewed as an engine of economic growth and source of job creation. In an attempt to ease their financial constraints, India and some other countries, have experimented with enabling SMEs to access public markets by listing their shares on exchanges with less stringent criteria. This column analyses the impact of listing on the fortunes of SMEs in India.
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Give women credit
Erica Field , Rohini Pande
Posted on: 23 Nov 2017
Topics:   Finance , Gender

Since its inception in the 1970s microfinance has emerged as an important tool to support livelihoods among those who lack access to traditional banking services, though the method has its critics. Erica Field and Rohini Pande carried out a series of experiments in India that have given insights into ways microfinance can be refined to strengthen its beneficial impact for the world’s poorest women.
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What did demonetisation do to domestic agricultural markets?
Nidhi Aggarwal , Sudha Narayanan
Posted on: 10 Nov 2017

When the note ban was announced a year ago, many feared that it would hit agriculture and informal sectors the hardest given the widespread use of cash for transacting in these sectors. Analysing data from 2,953 mandis across India for 35 major agricultural commodities for the period 2011-2017, this column finds that there are lingering impacts of demonetisation on farmers and adverse distributional consequences overall.
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Caste and credit: Not such a woeful tale?
Sunil Mitra Kumar , Ragupathy Venkatachalam
Posted on: 11 Sep 2017
Topics:   Caste , Finance

Caste is an enduring predictor of economic status in India and caste-based discrimination continues to pervade several spheres of life. What about rural lending? This column suggests that most caste-wise differences in access to loans reflect differences in application rates and only a smaller part are due to discrimination: backward caste-members are a lot less likely to apply for loans than the advantaged groups.
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Stock market participation in the aftermath of an accounting scandal
Renuka Sane
Posted on: 30 Aug 2017
Topics:   Finance

An emerging literature shows that exposure of fraud in the corporate sector leads to a fall in trust on part of households and decline in their stock market participation. Analysing data on daily investor account holdings from India, this column finds that contrary to international experience, an event such as the Satyam scandal did not have a big impact on investor activity.
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The economic and political consequences of India’s demonetisation
Abhijit Banerjee , Namrata Kala
Posted on: 26 Jul 2017

The ruling party at the centre won the Uttar Pradesh state election despite its demonetisation policy having some negative economic impacts on the Indian economy. By combining primary data from surveys of wholesale and retail traders, with secondary data on wholesale markets, this column seeks to analyse why this was so.
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Understanding livelihood resilience in Bihar
Surya Bhushan , K. V. Raju
Posted on: 16 Jun 2017
Topics:   Finance
Tags:   Bihar

This column develops a livelihood resilience index including three key components – bio-physical, economic, and social resources – and estimates the index for districts in the state of Bihar.
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Bank financing of stressed firms
Rajeswari Sengupta , Anjali Sharma
Posted on: 07 Jun 2017
Topics:   Finance

There is anecdotal evidence that banks in India have been extending credit to highly distressed firms. By delaying recognition of bad loans, banks may improve their own profitability in the short run, but in the long run, this has only exacerbated the non-performing asset crisis in the banking sector. This column provides preliminary empirical evidence that banks have indeed been throwing good money after bad.
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Hazards of farm loan waivers
Tanika Chakraborty , Aarti Gupta
Posted on: 23 May 2017

In theory, debt waivers are expected to induce the optimal level of effort from the debtor for loan repayment. However, repeated waivers may distort household expectations about credit contract enforcements in the future. This column analyses the effect of Uttar Pradesh’s state-level debt waiver programme – announced right after India’s nationwide Agricultural Debt Waiver and Debt Relief Scheme – on consumption and investment behaviour of households.
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