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The Determinants of Economic Well-being:An Application in the Indian States

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  • Sudip Ranjan Basu

    (Graduate Institute of International Studies HEI , Geneva)

Abstract

The purpose of this paper is to explore the determinants of economic well-being. We provide a methodology to compute well-being by aggregating different socio-economic dimensions with factor analysis technique. We also estimate quality of good governance (using latent variable approach) and a financial decentralisation index. Panel data is employed to explore if better quality of institutional arrangements (of governance and more financial decentralisation) lead to better outcome in the economic well-being index. The evidence shows a strong positive link ( from using data of 16 major Indian states over four points of time (1970s to 1997-latest)).

Suggested Citation

  • Sudip Ranjan Basu, 2005. "The Determinants of Economic Well-being:An Application in the Indian States," Development and Comp Systems 0509009, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0509009
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Well-being; Governance; Decentralisation; Panel data; India;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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