IDEAS home Printed from https://ideas.repec.org/a/ist/iujepr/v10y2023i1p61-86.html
   My bibliography  Save this article

Governance in Indian States: An Inter and Intra State Analysis

Author

Listed:
  • Nausheen SODHI

    (Panjab University Panjab University, Department of Economics, Chandigarh, India)

  • Upinder SAWHNEY

    (Panjab University Panjab University, Department of Economics, Sector-14, Chandigarh, India)

Abstract

Good governance structures can enhance policy making, but the outcomes of such policies differ at the state level as compared to the national level. While there are abundant international and nation level studies on governance, there are few studies on sub-national analysis. Numerous comprehensive indices of governance exist in the literature, but the need to harmonize conceptualization and operationalisation of governance remains. This paper takes principles of good governance categorized into sub-dimensions comprising 75 variables to construct governance index for three Indian states for the time period from 2002 to 2016. The three states i.e. Haryana, Andhra Pradesh and Bihar are selected to represent high, middle and low per capita Gross State Domestic Product (GSDP) respectively and an inter-state and intra-state analysis of their governance performance is done using one-way Analysis of Variance (ANOVA) and Tukey and Games-Howell post-hoc tests for pair-wise comparisons. Results show that governance performance of Andhra Pradesh exceeds that of high GSDP state Haryana, while that of least GSDP state Bihar is the worst. This suggests a stronger link between poor governance and low GSDP compared to good governance and high economic growth. Policies for improving governance and economic growth for low growth states should follow a comprehensive and unified approach, while for high growth states, policies to improve governance should follow a targeted approach towards separate governance parameters.

Suggested Citation

  • Nausheen SODHI & Upinder SAWHNEY, 2023. "Governance in Indian States: An Inter and Intra State Analysis," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 61-86, January.
    • Handle: RePEc:ist:iujepr:v:10:y:2023:i:1:p:61-86
    DOI: 10.26650/JEPR1109691
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/156AB8C3E75E4A24BF7A34C25771B03A
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/jepr/article/governance-in-indian-states-an-inter-and-intra-state-analysis
    Download Restriction: no
    File URL: https://libkey.io/10.26650/JEPR1109691?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Roumeen Islam, 2006. "Does More Transparency Go Along With Better Governance?," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 121-167, July.
    3. Graeme D. Ruxton & Guy Beauchamp, 2008. "Time for some a priori thinking about post hoc testing," Behavioral Ecology, International Society for Behavioral Ecology, vol. 19(3), pages 690-693.
    4. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, September.
    5. Cicatiello, Lorenzo & De Simone, Elina & Ercolano, Salvatore & Gaeta, Giuseppe Lucio, 2021. "Assessing the impact of fiscal transparency on FDI inflows," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bertocchi, Graziella, 2011. "The enfranchisement of women and the welfare state," European Economic Review, Elsevier, vol. 55(4), pages 535-553, May.
    2. Masayuki Kudamatsu, 2012. "Has Democratization Reduced Infant Mortality In Sub-Saharan Africa? Evidence From Micro Data," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1294-1317, December.
    3. Deng, Jiapin, 2023. "Born to be different: The role of local political leaders in poverty reduction in China," China Economic Review, Elsevier, vol. 78(C).
    4. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
    5. Eiji Yamamura, 2015. "Transparency and Views Regarding Nuclear Energy Before and After the Fukushima Accident: Evidence on Micro-Data," Pacific Economic Review, Wiley Blackwell, vol. 20(5), pages 761-777, December.
    6. Konstantinos Rontos & Maria-Eleni Syrmali & Ioannis Vavouras, 2015. "The Determinants of Governance: A Global Analysis," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 5(2), pages 868-868.
    7. Triki, Thouraya & Kouki, Imen & Dhaou, Mouna Ben & Calice, Pietro, 2017. "Bank regulation and efficiency: What works for Africa?," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 183-205.
    8. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 27(1), pages 79-109, May.
    9. Salahodjaev, Raufhon & Azam, Sardor, 2015. "Intelligence and gender (in)equality: empirical evidence from developing countries," MPRA Paper 66295, University Library of Munich, Germany.
    10. Valsecchi, Michele, 2010. "Ethnic diversity, economic performance and civil wars," Working Papers in Economics 433, University of Gothenburg, Department of Economics.
    11. Cho, Seo-young & Vadlamannati, Krishna Chaitanya, 2010. "Compliance for big brothers: An empirical analysis on the impact of the anti-trafficking protocol," University of Göttingen Working Papers in Economics 118, University of Goettingen, Department of Economics.
    12. Leeson, Peter T., 2005. "Endogenizing fractionalization," Journal of Institutional Economics, Cambridge University Press, vol. 1(1), pages 75-98, June.
    13. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    14. Marco Botta & Luca Colombo, 2016. "Macroeconomic and Institutional Determinants of Capital Structure Decisions," DISCE - Working Papers del Dipartimento di Economia e Finanza def038, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. J. Clark & Robert Lawson & Alex Nowrasteh & Benjamin Powell & Ryan Murphy, 2015. "Does immigration impact institutions?," Public Choice, Springer, vol. 163(3), pages 321-335, June.
    16. Torgler, Benno & Schneider, Friedrich & Schaltegger, Christoph A., 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," Berkeley Olin Program in Law & Economics, Working Paper Series qt6331x6vz, Berkeley Olin Program in Law & Economics.
    17. Cooray, Arusha, 2011. "The role of the government in financial sector development," Economic Modelling, Elsevier, vol. 28(3), pages 928-938, May.
    18. Fidrmuc, Jana P. & Jacob, Marcus, 2010. "Culture, agency costs, and dividends," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 321-339, September.
    19. Kaivan Munshi & Mark Rosenzweig, 2008. "The Efficacy of Parochial Politics: Caste, Commitment, and Competence in Indian Local Governments," NBER Working Papers 14335, National Bureau of Economic Research, Inc.
    20. Sébastien Marchand, 2012. "Legal Origin, Colonial Origins and Deforestation," Economics Bulletin, AccessEcon, vol. 32(2), pages 1653-1670.

    More about this item

    Keywords

    Governance Index; Economic growth; ANOVA; Service delivery; Sub-national JEL Classification : H11 ; H70 ; O43;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    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:ist:iujepr:v:10:y:2023:i:1:p:61-86. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/ifisttr.html .

    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.