| dc.description.abstract | Many countries witnessed enormous increases in international capital
mobility after globalization. This, in turn, has improved economic integration
among emerging economies and developed nations. The trend of these cross
country flows of capital discloses that non-debt creating private capital flows
are dominating the official flows which come in the form of official grants and
private debt flows. Moreover, the portfolio equity investment which shows
tremendous growth has exposed individual countries to the risk of improved
volatility and sudden stops. These trends, driven by globalization, have
enabled the pursuit of higher returns and portfolio diversification as well as
market-oriented reforms in many countries which have liberalized access to
financial markets. As a new participant in the globalization wave, India went
through several structural and policy changes only in the early 1990s. India
introduced a New Economic Policy guided by the IMF and the World Bank
with the intention of economic stabilization. | |
