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Impact of Fiscal Transfers on Gross Domestic Product of Indian Federal States: A Panel Data Analysis

In: Challenges and Issues in Indian Fiscal Federalism

Author

Listed:
  • Lalitagauri Kulkarni

    (Gokhale Institute of Politics and Economics)

  • Akshay Dhume

    (Gokhale Institute of Politics and Economics
    PES University)

Abstract

The paper attempts to understand the impact of tax transfers and grants from the Central Governments to the States on the latter economic growth. The study is conducted for the period 2004–05 to 2012–13 and includes 11 ‘Special’ Category states and 17 ‘Non-Special’ Category states. The paper finds that while tax transfers have a positive impact on economic growth of the states; grants have a mixed impact on growth. Fixed Effect model was selected to analyze the data.

Suggested Citation

  • Lalitagauri Kulkarni & Akshay Dhume, 2018. "Impact of Fiscal Transfers on Gross Domestic Product of Indian Federal States: A Panel Data Analysis," India Studies in Business and Economics, in: Naseer Ahmed Khan (ed.), Challenges and Issues in Indian Fiscal Federalism, chapter 0, pages 47-59, Springer.
  • Handle: RePEc:spr:isbchp:978-981-10-6217-9_5
    DOI: 10.1007/978-981-10-6217-9_5
    as

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