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Linkage between social sector’s spending and HDI: study on individual as well as panel data of Indian states

Author

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  • Ramesh Chandra Das
  • Chhanda Mandal
  • Arun Kumar Patra

Abstract

Spending upon different social sectors from the government’s exchequer has been one of the priority agendas of any country or province since it affects growth and human development. In this juncture, this study investigates the linkages between social sector’s spending and HDI in individual as well as panel of states in India for the period 1995–2016. Using cointegration, causality and error correction mechanism for the individual and panel of states, the study observes that there are long-run relations between the two for a small number of states but no one produces error correction results. Most of the states in the North Eastern Region produce bilateral causality between two. Further, the panel data results through VECM show that both the indicators have long-run associations but errors are not again corrected. However, all the past values of the two indicators make a cause to each other in the panel framework.

Suggested Citation

  • Ramesh Chandra Das & Chhanda Mandal & Arun Kumar Patra, 2021. "Linkage between social sector’s spending and HDI: study on individual as well as panel data of Indian states," Review of Social Economy, Taylor & Francis Journals, vol. 79(2), pages 357-379, April.
    • Handle: RePEc:taf:rsocec:v:79:y:2021:i:2:p:357-379
    DOI: 10.1080/00346764.2019.1671605
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