IDEAS home Printed from https://ideas.repec.org/a/jge/journl/1011.html
   My bibliography  Save this article

Does Causation hold for Panel Data in between SDP and NTR among Indian States?

Author

Listed:
  • Alok Kumar Pandey

Abstract

Inadequate revenue sources, uncontrolled growth of current expenditures and failure of central transfers to grow as fast as the states ‘own revenues’ have been the major sources of fiscal imbalance at states level. The existence of nexus in between NTR and SDP can be examined in several ways like growth rates relating to SDP and NTR, proportion of NTR to SDP, several policies relating to accelerate SDP and NTR, etc. So far as inter-state non-tax revenue and state domestic product in India is concerned, limited studies have been done. Present study tries to explore the stationarity and cointigration between Non Tax Revenue and State Domestic Product of twenty major states of Indian federal system in panel data structure for the period 1980-81 to 2011-12.The objectives of the study are: to test the panel stationary of Domestic Production and Non Tax Revenue of the major states of the Indian federal system for the period 1980-81 to 2011-12 in terms of total and growth rate and to test the panel cointegration in between SDP and NTR for the Indian federal system of twenty major states state for the period 1980-81 to 2011-12 in terms of total and growth rate. In the present study data has been taken from Handbook of Statistics on Indian Economy and State Finance for twenty major states; Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Nagaland, Orissa, Punjab, Rajasthan, Tamil Nadu, Tripura and Uttar Pradesh (Handbook of Statistics on Indian Economy 2011-12).In the present study, LLC (2002) and IPS (2003) tests of stationarity have been used. Kao (1999) test of panel cointegration shows that the SDP and NTR and NTR and SDP for the twenty states for the period under study are cointegrable. The results of the study suggest that state domestic product of the states are causing the non tax revenue of the states and the non tax revenue of the states are also causing state domestic product of the states for Indian federal system.

Suggested Citation

  • Alok Kumar Pandey, 2014. "Does Causation hold for Panel Data in between SDP and NTR among Indian States?," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 10(1), pages 3-15, March.
    • Handle: RePEc:jge:journl:1011
    as

    Download full text from publisher

    File URL: http://www.rcssindia.org/jge
    Download Restriction: Only to subscribers
    File URL: http://www.rcssindia.org
    Download Restriction: Not freely downloadable
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    SDP; NTR; Panel Unit Root; Panel Cointegration; India;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jge:journl:1011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr J K Sachdeva (email available below). General contact details of provider: http://www.rcssindia.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.