04346nam 2200697 450 991046402070332120191127134449.01-4623-1948-31-4527-0469-41-4518-6956-897866128405001-282-84050-9(CKB)3170000000055005(EBL)1607842(SSID)ssj0000943035(PQKBManifestationID)11593657(PQKBTitleCode)TC0000943035(PQKBWorkID)10976895(PQKB)10423999(OCoLC)762652681(MiAaPQ)EBC1607842(EXLCZ)99317000000005500520140226h20082008 uy 0engurcnu||||||||txtccrReal and financial linkages in China and India /Jahangir Aziz ; authorized for distribution by Steven Dunaway[Washington, District of Columbia] :International Monetary Fund,2008.©20081 online resource (38 p.)IMF Working PapersIMF working paper ;WP/08/95Description based upon print version of record.1-4519-1410-5 Includes bibliographical references.Contents; I. Introduction; II. China and India's Recent Growth Experience; III. China and India's Economy as a Neoclassical Growth Model; Figures; 1. China and India: GDP Growth Rate; 2. Changes in GDP Components: 1990-2005; IV. Calibrating the Growth Model; 3. China: Growth Accounting; 4. China and India: Labor Productivity; 5. India: Growth Accounting; V. Semulating the Solow Growth Model; 6. China: Simulation with Efficiency Wedge; 7. China Simulation with Efficiency and Government Wedges; 8. India: Simulation with Efficiency and Government Wedges; VI. Investment Wedge9. China: Derived Investment Wedge 10. India: Derived Investment Wedge; 11. China: Simulation with Efficiency, Government and Investment Wedges; 12. India: Simulation with Efficiency, Government and Investment Wedges; VII. Interpreting Investment Wedges as Financial Frictions; A. China's Nonperforming Loans; 13. China: Derived Cumulative Capital Wedge; 14. China: Average Effective Tax Rate; Table; 1. China: Official Estimate of NPLs Created at End-2004; B. Borrowing Constraints and Bank Reform in China; 15. China: Domestic Savings by Sectors; 16. China: Short-Term Bank Loan17. China: Simulation with Borrowing Constraint C. Self-Insurance Against Administrative Controls; D. Financial Sector Reforms in India; 18. Effective Gross Capital Income Tax Rate; 19. India: CRR and SLR; 20. India: Domestic Savings; 21. India: Simulation with SLR; VIII. Conclusions; 22. India: Simulation with SLR and CRR; 23. India: Simulating Policy Change; 24. China: Simulating Policy Change; ReferencesIn the spirit of what is known as business cycle accounting, this paper finds that the investment wedge-the gap between household's rate of intertemporal substitution and the marginal product of capital-is large and quantitatively significant in explaining China's and India's growth. Specific financial sector policies are shown to map well the size and changes in the investment wedge. In the case of China, nonperforming loans, borrowing constraints, and uncertainty over changes in government guidance in bank lending, have implied large transfers from households to firms that have kept capitalIMF Working PapersEconomic developmentChinaEconometric modelsEconomic developmentIndiaEconometric modelsFinanceChinaEconometric modelsFinanceIndiaEconometric modelsElectronic books.Economic developmentEconometric models.Economic developmentEconometric models.FinanceEconometric models.FinanceEconometric models.338.951Aziz Jahangir856988Dunaway Steven Vincent872386MiAaPQMiAaPQMiAaPQBOOK9910464020703321Real and financial linkages in China and India1947659UNINA