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Determinants of economic growth at the subnational level in the Indian context: Role of governance

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  • Shrawan, Aakanksha

    (National Institute of Public Finance and Policy)

Abstract

The present study attempts to assess the potential determinants of economic growth at the state-level for 27 Indian states for the period 2000-01 to 2021-22. We also incorporate a quantitative variable, unspent funds as a proportion of total budgeted expenditure, to control for the quality of governance, along with other macroeconomic and structural factors. The paper finds a negative and statistically significant impact of unspent funds on the per capita GSVA growth of the states under study at the aggregate level. In addition, we also evaluate the unique growth experiences of different states separately without assuming a homogeneous response of the explanatory variables on the growth processes of all states which might assist the policymakers in offering explanations for the better or worse performing states with respect to the same macroeconomic variable.

Suggested Citation

  • Shrawan, Aakanksha, 2024. "Determinants of economic growth at the subnational level in the Indian context: Role of governance," Working Papers 24/420, National Institute of Public Finance and Policy.
    • Handle: RePEc:npf:wpaper:24/420
    Note: Working Paper 420, 2024
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    References listed on IDEAS

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    5. Chakraborty, Lekha & Kaur, Amandeep & Balamuraly B & Yadav, Jitesh, 2024. "Mission VATSALYA: A Public Expenditure and Institutional Review of Child Protection Scheme across Districts in Odisha, India," Working Papers 24/418, National Institute of Public Finance and Policy.
    6. Andreas Bergh & Magnus Henrekson, 2011. "Government Size And Growth: A Survey And Interpretation Of The Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 872-897, December.
    7. Sanyal, Anirban & Singh, Nirvikar, 2021. "Structural Change and Economic Growth: Patterns and Heterogeneity among Indian States and Implications for a Post-COVID Recovery," India Policy Forum, National Council of Applied Economic Research, vol. 17(1), pages 143-198.
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    Cited by:

    1. Chakraborty, Lekha, 2025. "Mining Royalty is not Tax: Analyzing the Supreme Court Judgment," Working Papers 25/423, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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