Raghbendra Jha () (Australian National University) Bagala Biswal () (Memorial University and Queen’s University) Urvashi D. Biswal (Queen’s University)
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The principal objective of this study is to test whether public expenditures on education, health and other development activities have been effective in reducing poverty in India. To ensure sensitivity and robustness of the results, three different measures of poverty belonging to the Foster-Greer-Thorbecke group of poverty measures are used. We consider various types of education expenditures, viz., government expenditures on elementary, secondary, higher/university and "other" levels. Data for fourteen Indian states from 13th to 53rd rounds of National Sample Survey of India are used for estimating poverty. Using unbalanced panel data techniques, we test Fixed effects, Random effects and OLS models, and conclude that education, health and development expenditures help reduce poverty. In particular, expenditure on higher, university, technical, adult and vocational educations as opposed to elementary and secondary education is more effective in poverty reduction. Several policy conclusions are advanced.
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number
998.
Find related papers by JEL classification: H5 - Public Economics - - National Government Expenditures and Related Policies H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs I0 - Health, Education, and Welfare - - General I3 - Health, Education, and Welfare - - Welfare and Poverty O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
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