ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Are Formal and Informal Credit Markets in India Interlinked

Are Formal and Informal Credit Markets in India Interlinked? Pradeep Srivastava This article takes afresh look at whether or not the formal and informal credit markets in India are interlinked. Instead of using unreliable interest rate data, implications of informal credit for output behaviour are derived and tested. The results are consistent with no interlinkage between the markets.

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