LEADER 06880oam 22013334 450 001 9910788240003321 005 20230721045632.0 010 $a1-4623-1948-3 010 $a1-4527-0469-4 010 $a1-4518-6956-8 010 $a9786612840500 010 $a1-282-84050-9 035 $a(CKB)3170000000055005 035 $a(EBL)1607842 035 $a(SSID)ssj0000943035 035 $a(PQKBManifestationID)11593657 035 $a(PQKBTitleCode)TC0000943035 035 $a(PQKBWorkID)10976895 035 $a(PQKB)10423999 035 $a(OCoLC)762652681 035 $a(MiAaPQ)EBC1607842 035 $a(IMF)WPIEE2008095 035 $a(EXLCZ)993170000000055005 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aReal and Financial Sector Linkages in China and India /$fJahangir Aziz 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (38 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/08/95 300 $aDescription based upon print version of record. 311 $a1-4519-1410-5 320 $aIncludes bibliographical references. 327 $aContents; 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 Wedge 327 $a9. 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 Loan 327 $a17. 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; References 330 3 $aIn the spirit of what is known as business cycle accounting, this paper finds that the investment wedge-the gap between household's rate of intertemporal substitution and the marginal product of capital-is large and quantitatively significant in explaining China's and India's growth. Specific financial sector policies are shown to map well the size and changes in the investment wedge. In the case of China, nonperforming loans, borrowing constraints, and uncertainty over changes in government guidance in bank lending, have implied large transfers from households to firms that have kept capital cost low and encouraged investment. In the case of India, post-1992 financial sector reforms, particularly the reduction in the funds preempted by the government from the banking system, has played an important role in reducing the cost of capital. Simulations show that for rebalancing growth in China and sustaining high investment rate in India, further financial sector reforms could turn out to be key. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/095 606 $aEconomic development$zChina$xEconometric models 606 $aEconomic development$zIndia$xEconometric models 606 $aFinance$zChina$xEconometric models 606 $aFinance$zIndia$xEconometric models 606 $aFinance: General$2imf 606 $aMacroeconomics$2imf 606 $aMoney and Monetary Policy$2imf 606 $aTaxation$2imf 606 $aIndustries: Financial Services$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aPersonal Income and Other Nonbusiness Taxes and Subsidies$2imf 606 $aFinancial Markets and the Macroeconomy$2imf 606 $aBanks$2imf 606 $aDepository Institutions$2imf 606 $aMicro Finance Institutions$2imf 606 $aMortgages$2imf 606 $aMonetary Policy, Central Banking, and the Supply of Money and Credit: General$2imf 606 $aFinance$2imf 606 $aPublic finance & taxation$2imf 606 $aMonetary economics$2imf 606 $aConsumption$2imf 606 $aCapital income tax$2imf 606 $aFinancial sector development$2imf 606 $aNonperforming loans$2imf 606 $aBank credit$2imf 606 $aEconomics$2imf 606 $aIncome tax$2imf 606 $aFinancial services industry$2imf 606 $aLoans$2imf 606 $aCredit$2imf 607 $aChina, People's Republic of$2imf 615 0$aEconomic development$xEconometric models. 615 0$aEconomic development$xEconometric models. 615 0$aFinance$xEconometric models. 615 0$aFinance$xEconometric models. 615 7$aFinance: General 615 7$aMacroeconomics 615 7$aMoney and Monetary Policy 615 7$aTaxation 615 7$aIndustries: Financial Services 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aPersonal Income and Other Nonbusiness Taxes and Subsidies 615 7$aFinancial Markets and the Macroeconomy 615 7$aBanks 615 7$aDepository Institutions 615 7$aMicro Finance Institutions 615 7$aMortgages 615 7$aMonetary Policy, Central Banking, and the Supply of Money and Credit: General 615 7$aFinance 615 7$aPublic finance & taxation 615 7$aMonetary economics 615 7$aConsumption 615 7$aCapital income tax 615 7$aFinancial sector development 615 7$aNonperforming loans 615 7$aBank credit 615 7$aEconomics 615 7$aIncome tax 615 7$aFinancial services industry 615 7$aLoans 615 7$aCredit 676 $a338.951 700 $aAziz$b Jahangir$01463982 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788240003321 996 $aReal and Financial Sector Linkages in China and India$93673509 997 $aUNINA