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Economic Growth, Well-Being and Governance under Economic Reforms: Evidence from Indian States

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Author Info
Sudip Ranjan Basu (Graduate Institute of International Studies HEI , Geneva)

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Abstract

This paper provides empirical evidence, from the study of sixteen major Indian states for the period 1980-2001, that under the economic reform process, the better institutional mechanism could actually help economies to grow faster with higher level of economic well-being. We estimate economic well-being index (by aggregating fifteen socio- economic variables, viz, education, infrastructure, technological progress, income, etc.) and also index of good governance (by aggregating thirteen variables indicating rule of law, government functioning, public services, press freedom, etc) by multivariate statistical measures. Panel regression showed that governance measures, and economic policy variables are crucial to explain differential level of development performance across states in India during the last two decades.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0509007.

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Length: 48 pages
Date of creation: 08 Sep 2005
Date of revision:
Handle: RePEc:wpa:wuwpdc:0509007

Note: Type of Document - pdf; pages: 48. pdf document
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Web page: http://129.3.20.41

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Related research
Keywords: Growth; Well-being; Governance; Economic Reforms; Panel data; India;

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Find related papers by JEL classification:
B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January. [Downloadable!] (restricted)
  2. Pranab Bardhan & Dilip Mookherjee, 1998. "Expenditure Decentralization and the Delivery of Public Services in Developing Countries," Boston University - Institute for Economic Development 90, Boston University, Institute for Economic Development.
  3. Keefer, Philip & Knack, Stephen, 1997. "Why Don't Poor Countries Catch Up? A Cross-National Test of Institutional Explanation," Economic Inquiry, Oxford University Press, vol. 35(3), pages 590-602, July.
  4. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August. [Downloadable!] (restricted)
  5. Sudip Ranjan Basu & Jaya Krishnakumar & Gabriela Flores, 2004. "Spatial Distribution of Welfare Across States and Different Socio-Economic Groups in Rural and Urban India," Cahiers du Département d'Econométrie 2004.14, Département d'Econométrie, Université de Genève. [Downloadable!]
  6. Richard E. Baldwin & Philippe Martin, 1999. "Two Waves of Globalisation: Superficial Similarities, Fundamental Differences," NBER Working Papers 6904, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Andrea Bassanini & Stefano Scarpetta & Philip Hemmings, 2001. "Economic Growth: The Role of Policies and Institutions: Panel Data. Evidence from OECD Countries," OECD Economics Department Working Papers 283, OECD, Economics Department. [Downloadable!]
  8. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April. [Downloadable!] (restricted)
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  9. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May. [Downloadable!] (restricted)
    Other versions:
  10. Datt, Gaurav & Ravallion, Martin, 1997. "Macroeconomic Crises and Poverty Monitoring: A Case Study for India," Review of Development Economics, Blackwell Publishing, vol. 1(2), pages 135-52, June. [Downloadable!] (restricted)
    Other versions:
  11. Sudip Ranjan Basu, 2005. "Does Governance Matter?Some Evidence from Indian States," Development and Comp Systems 0509008, EconWPA. [Downloadable!]
  12. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages F22-F49, 02. [Downloadable!] (restricted)
    Other versions:
  13. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sudip Ranjan Basu, 2008. "A new way to link development to institutions,policies and geography," HEI Working Papers 04-2008, Economics Section, The Graduate Institute of International Studies, revised Mar 2008. [Downloadable!]
  2. Sudip Ranjan Basu, 2007. "Comparing China and India: Is dividend of economic reforms polarized?," HEI Working Papers 01-2007, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
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