IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-11-00713.html
   My bibliography  Save this article

An empirical study between government sectoral expenditure and indian economic growth

Author

Listed:
  • Amalendu Bhunia

    (Fakir Chand College under University of Calcutta)

Abstract

The purpose of the present study is to examine the growth effect of government expenditure on economic growth in India over a period from 1991 to 2010, with a particular focus on sectoral expenditures. Five key sectors were preferred (security, health, education, transportation and communication and agriculture.). The variables were tested for stationarity and co-integration analysis using the Johansen co-integration technique. Error-correction test was also performed. The result shows that in the short-run, expenditure on agriculture was found to be negatively related to economic growth. The impact of education, though also negative was not significant. The impact of expenditure on health was found to be positively related to economic growth. Nonetheless expenditures on national security transportation and communication were positively related to economic growth, the impacts were not statistically significant. It is possible that in the long-run expenditure on education could be positive if brain drain could be checked.

Suggested Citation

  • Amalendu Bhunia, 2011. "An empirical study between government sectoral expenditure and indian economic growth," Economics Bulletin, AccessEcon, vol. 31(4), pages 1-47.
    • Handle: RePEc:ebl:ecbull:eb-11-00713
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2011/Volume31/EB-11-V31-I4-A47.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuee Gao & Xin Zou & Rujia Chen & Yanli Ma & Chengjiang Li & Yaping Zhang, 2020. "Freight Mode Coordination in China: From the Perspective of Regional Differences," Sustainability, MDPI, vol. 12(7), pages 1-24, April.

    More about this item

    Keywords

    Government Expenditure; Economic Growth; Error Correction; Co-integration; India.;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

    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:ebl:ecbull:eb-11-00713. 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: John P. Conley (email available below). General contact details of provider: .

    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.