X hits on this document

PDF document

Banking Reform in India∗ - page 43 / 57





43 / 57

Finally we feel that giving banks a stronger incentive to lend by cutting the interest rate on government borrowing will also help. The evidence reported above is only suggestive but it does suggest that where lending is difficult, making lending to the government less lucrative can have a strong effect on the willingness of bankers to make loans to the private sector. Thus it is the less obviously creditworthy firms that suffer most from the high rates of government borrowing.



Banerjee, Abhijit, 2003. “Contracting Constraints, Credit Markets, and Economic Develop- ment.” in M. Dewatripoint, L. Hansen and S. Turnovsky, eds. Advances in Economics and Econometrics: Theory and Applications, Eight World Congress of the Econometric Society, Volume III. Cambridge University Press, pp. 1-46.

Banerjee, Abhijit, Shawn Cole, and Esther Duflo, 2003. “Bank Finance in India.” MIMEO, MIT.

Banerjee, Abhijit and Esther Duflo, 2000. “Efficiency of Lending Operations and the Impact of Priority Sector Regulations.” MIMEO, MIT.

Banerjee, Abhijit and Esther Duflo, 2001. “The Nature of Credit Constraints. Evidence from an Indian Bank.” MIMEO, MIT.

Banerjee, Abhijit and Esther Duflo, “Do Firms Want to Borrow more? Testing Credit Con- straints Using a Directed Lending Program.” Working Paper 2003-005 (Cambridge, Mass.: Bureau for Research in the Economic Analysis of Development, 2003).

Banerjee, Abhijit and Kaivan Munshi, 2004. “Networks, Migration and Investment: Insiders and Outsiders in Tirupur’s Production Cluster.” Review of Economic Studies, 71: 19-42.

Berger, Allen, Nathan Miller, Mitchell Peterson, Raghuram Rajan and Jeremy Stein, 2001. “Does Function Follows Organizational Form: Evidence from the Lending Practices of Large and Small Banks.” MIMEO, Harvard University.

Bernanke, Benjamin and Mark Gertler, 1989. “Agency Costs, Net Worth, and Business Fluc- tuations.” American Economic Review, 79(1):14-31.


Document info
Document views234
Page views234
Page last viewedWed Jan 25 00:04:50 UTC 2017