Social Capital and Performance of Fiscal Institution in India during 1991-2012

Soumyananda Dinda ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the relationship between social capital and performance of fiscal institutions using provincial sub-national state level data in India during 1991-2012. Institution in India is significant and controls fiscal performances as per social need for economic development. People participation in public affairs or simply vote turnover in general election in India is taken to measure the social trust on fiscal institution. Fiscal performance in India is based on social capital. As one percent vote turnover rate rises fiscal deficit reduces by 2.6 to 2.8 percent. Empirical findings suggest that social capital indirectly control the fiscal performance of the elected government. The results are robust to a number of control variables. The strong political trust is established through high turnover rate and vote share in the election for formation of government that create the platform for sound fiscal policy decisions.

Keywords: Fiscal Performance; Social Capital; Trust; Reciprocity; Institution; Fiscal Deficit; Vote Turnover; Civil Society; Cooperation; Collective action (search for similar items in EconPapers)
JEL-codes: H2 H3 H6 O1 Z1 (search for similar items in EconPapers)
Date: 2014-12-20, Revised 2015-06-26
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/75827/1/MPRA_paper_75827.pdf original version (application/pdf)

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:pra:mprapa:75827

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().