Does government revenue converge across Indian states? Evidence from club convergence

Vaseem Akram and Badri Rath

Applied Economics Letters, 2022, vol. 29, issue 10, 915-919

Abstract: While the bulk of the studies in India examine the convergence of per-capita income or expenditures, we investigate whether there is any evidence of convergence of government revenues and its various compositions by focusing a panel of 22 Indian states for the periods 1980–81 to 2014–15. To answer this question, the present study employs Phillips and Sul panel club convergence technique. The results find evidence of a single club convergence in the case of total revenues and revenues collected in the revenue account. Further, our results also reveal the presence of three-club convergence when we disaggregate the gross revenues into capital receipts and state-owned tax-revenue. From the policy perspective, it is important for the Central government to integrate all states in revenues collection through tax devolution formula and grants-in-aid.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2021.1897734 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:29:y:2022:i:10:p:915-919

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2021.1897734

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().