• 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.