PLCP 3630 Lecture Notes - Lecture 11: Foreign Portfolio Investment, Foreign Direct Investment, Economic Globalization
20 Oct 2016
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Document Summary
The pre-reform policy regime and the dominant proprietary classes . The failure/market explanation vs. the institutional/politics explanation. Has grown steadily since 1991 - lil dip in 2008, but since then has largely continued to grow. Reorientation of india"s trade from europe/us to asia. The old regime: india"s socialist pattern of society . Strong central state guiding the economy to accelerate growth. Industry was felt to be the primary basis of military power. Colonial history and current thinking in developing world makes india suspicious of global economy. Led to constraints on participation in global economy. Political goals take precedence over economic ones. Didn"t want economic growth to cause disruption. Important substitution industrialization indian style: 1950s to 1980s. Industrial licensing & limits on size of business. Firms could grow to a certain size but then were restricted after a point, regardless of whether the field was competitive. The average tariff was over 100% with some industries having tariffs in excess of 200%
