Governance in Indian States: An Inter and Intra State Analysis

Nausheen Sodhi () and Upinder Sawhney
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Nausheen Sodhi: Panjab University Panjab University, Department of Economics, Chandigarh, India
Upinder Sawhney: Panjab University Panjab University, Department of Economics, Sector-14, Chandigarh, India

Journal of Economic Policy Researches, 2023, vol. 10, issue 1, 61-86

Abstract: Good governance structures can enhance policy making, but the outcomes of such policies differ at the state level as compared to the national level. While there are abundant international and nation level studies on governance, there are few studies on sub-national analysis. Numerous comprehensive indices of governance exist in the literature, but the need to harmonize conceptualization and operationalisation of governance remains. This paper takes principles of good governance categorized into sub-dimensions comprising 75 variables to construct governance index for three Indian states for the time period from 2002 to 2016. The three states i.e. Haryana, Andhra Pradesh and Bihar are selected to represent high, middle and low per capita Gross State Domestic Product (GSDP) respectively and an inter-state and intra-state analysis of their governance performance is done using one-way Analysis of Variance (ANOVA) and Tukey and Games-Howell post-hoc tests for pair-wise comparisons. Results show that governance performance of Andhra Pradesh exceeds that of high GSDP state Haryana, while that of least GSDP state Bihar is the worst. This suggests a stronger link between poor governance and low GSDP compared to good governance and high economic growth. Policies for improving governance and economic growth for low growth states should follow a comprehensive and unified approach, while for high growth states, policies to improve governance should follow a targeted approach towards separate governance parameters.

Keywords: Governance Index; Economic growth; ANOVA; Service delivery; Sub-national JEL Classification : H11; H70; O43 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ist:iujepr:v:10:y:2023:i:1:p:61-86

DOI: 10.26650/JEPR1109691

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