Impact of Fiscal Transfers on Gross Domestic Product of Indian Federal States: A Panel Data Analysis

Lalitagauri Kulkarni () and Akshay Dhume
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Lalitagauri Kulkarni: Gokhale Institute of Politics and Economics
Akshay Dhume: Gokhale Institute of Politics and Economics

Chapter Chapter 5 in Challenges and Issues in Indian Fiscal Federalism, 2018, pp 47-59 from Springer

Abstract: Abstract The paper attempts to understand the impact of tax transfers and grants from the Central Governments to the States on the latter economic growth. The study is conducted for the period 2004–05 to 2012–13 and includes 11 ‘Special’ Category states and 17 ‘Non-Special’ Category states. The paper finds that while tax transfers have a positive impact on economic growth of the states; grants have a mixed impact on growth. Fixed Effect model was selected to analyze the data.

Keywords: Fiscal transfers; Economic growth; Federal transfers; Panel data; Fixed effect model (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-10-6217-9_5

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DOI: 10.1007/978-981-10-6217-9_5

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