Institution of politically motivated policy certainty of government on economic growth: a study among major Indian states

Debnarayan Sarker and Debraj Das

MPRA Paper from University Library of Munich, Germany

Abstract: This paper theoretically tries to explore the impact of politically motivated policy certainty of a government guided by the norm of equality of income on economic growth and also tries to examine its empirical validity on major Indian states. This paper lends credence to the fact that politically motivated policy uncertainty among most of the major Indian states under this study has positive impact on their economic growth. This study suggests that the policy of attaining inclusive growth for Indian states should be formalized in such a way that equality in income distribution and economic growth should be attained simultaneously.

Keywords: politically motivated policy certainty; major Indian states; income distribution; reproducible capital (search for similar items in EconPapers)
JEL-codes: D31 (search for similar items in EconPapers)
Date: 2011-01
New Economics Papers: this item is included in nep-cwa and nep-fdg
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