Determinants of economic growth at the subnational level in the Indian context: Role of governance

Aakanksha Shrawan ()
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Aakanksha Shrawan: National Institute of Public Finance and Policy

Working Papers from National Institute of Public Finance and Policy

Abstract: The present study attempts to assess the potential determinants of economic growth at the state-level for 27 Indian states for the period 2000-01 to 2021-22. We also incorporate a quantitative variable, unspent funds as a proportion of total budgeted expenditure, to control for the quality of governance, along with other macroeconomic and structural factors. The paper finds a negative and statistically significant impact of unspent funds on the per capita GSVA growth of the states under study at the aggregate level. In addition, we also evaluate the unique growth experiences of different states separately without assuming a homogeneous response of the explanatory variables on the growth processes of all states which might assist the policymakers in offering explanations for the better or worse performing states with respect to the same macroeconomic variable.

Keywords: GSVA Growth; Unspent Funds; Feasible Generalised Least Squares; Industry; India (search for similar items in EconPapers)
JEL-codes: C23 L80 O10 O11 O14 O40 (search for similar items in EconPapers)
Pages: 38
Date: 2024-11
New Economics Papers: this item is included in nep-fdg and nep-inv
Note: Working Paper 420, 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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