• Does Financial Development contribute to Poverty Reduction.

      Jalilian, Hossein; Kirkpatrick, Colin (2005)
      The article examines the contribution of financial development to poverty reduction in developing countries. Building on earlier research which has established links between financial development and economic growth, and between economic growth and poverty reduction, the article tests for a causal process linking financial sector growth and poverty reduction. The empirical results indicate that, up to a threshold level of economic development, financial sector growth contributes to poverty reduction through the growth-enhancing effect. The impact of financial development on poverty reduction will be affected, however, by any change in income inequality resulting from financial development.
    • Financial development, economic growth and human capital accumulation: what is the link?

      Das, K.; Harper, J.; Arora, Rashmi (2014-07)
      A number of studies have explored the factors influencing financial development. Among them are national legal origin, settler mortality hypothesis, institutional factors, political factors, macroeconomic policies including capital account openness, social capital and also cultural factors. The relationship between financial development, human capital and economic growth, although acknowledged in the theoretical literature remains less explored at the empirical level. In this study we examine interaction between financial development, human capital and economic growth. The study aims to understand and examine how financial development is related to human capital accumulation and economic growth in a unified framework. In a cross-country panel data context using rigourous econometric techniques we examine these questions.
    • Financial sector development and smart cities: The Indian case

      Arora, Rashmi (2018-10)
      The paper examines the level of financial development of initial twenty shortlisted smart cities in India. • Results of the study revealed high inter-state and intra-state inequality as the cities with high FSI values and those with low FSI values are both located in the developed western and southern states. • A similar mixed picture emerges even for the less developed low income states such as Madhya Pradesh. • The study also highlighted large inter-state variations across the smart cities in financial development. • For a holistic approach to smart city development, a vibrant and developed financial sector is required.
    • Role of Finance in Economic Development

      Arora, Rashmi (Edward Elgar Publishers, 2022)
      A huge body of literature has well acknowledged the crucial role played by financial sector in economic growth. Financial sector enables mobilisation of savings and allocation of credit for production and investment. Among its other functions are supplying transaction and portfolio management services and providing payment services, and source of liquidity for the firms. Financial sector also monitors borrowers, matches illiquid assets with liquid liabilities, and integrates credit and liquidity provision functions (Bossone, 2000). Banks boost economic growth by identifying the entrepreneurs with the best chances of successfully initiating new goods and production processes (King & Levine, 1993) and facilitate long-run investments in the high return projects (Bencivenga & Smith, 1991). In this chapter we examine the role of financial sector in achieving economic growth and development. We also briefly look at the factors determining financial development.