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Accessing success
In India, branch expansion and credit growth in PSU banks is observed with a rise in employment

Team Outlook Business

Authors Rajiv Dehejia and Nandini Gupta discovered that despite theory suggesting that capital markets affect entrepreneurship and financial market development is associated with an increase in self-employment, there seems to be an opposite effect in India. More expansion in bank branches and credit from government-owned banks is observed when there is a rise in employment in formal sector firms. They also found that there is greater access to credit from formal institutions when there is a decrease in household employment or an increase in formal employment and wages. In an age of micro-financing micro to small enterprises, it has been observed that access to finance through traditional channels also has a positive impact on these firms, as they borrow more in areas where there is access to government banks.

Title: Financial Development and Occupational Choice: Evidence from India

Source: Social Science Research Network 

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