Trade and financial liberalisation There is large empirical literature suggesting that trade integration benefits a larger number and helps promote economic growth. In contrast, recent empirical research is unable to establish a clear link between financial integration and growth. There is therefore now a consensus among academicians and policy makers that trade liberalisation should take precedence over financial liberalisation.
The RBI approach makes a distinction among the different participants in order to assess, on an ongoing basis, the gains as well as the vulnerabilities of foreign currency exposures to the system.