Optimum government size and economic growth in case of Indian states: Evidence from panel threshold model

Akram, Vaseem and Rath, Badri Narayan (2019) Optimum government size and economic growth in case of Indian states: Evidence from panel threshold model. Economic Modelling. ISSN 02649993 (In Press)

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Abstract

This paper investigates the relationship between optimum government size and economic growth using data of Indian states during 1990-91 to 2017–18. Our results derived from panel threshold regression model show a positive and significant impact of government size on economic growth within the estimated thresholds for both aggregate and sub-panels based on income and regions. Once the government size moves above the upper threshold level, then its impact declines and turns to be insignificant. Thus, our findings suggest the policymakers for maintaining the government size within the thresholds limit.

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IITH Creators:
IITH CreatorsORCiD
Rath, Badri Narayanhttp://orcid.org/0000-0001-7211-0952
Item Type: Article
Uncontrolled Keywords: Economic growth, Indian states, Optimum government size, Panel threshold regression, Indexed in Scopus
Subjects: Arts > Liberal arts
Divisions: Department of Liberal Arts
Depositing User: Team Library
Date Deposited: 18 Sep 2019 06:11
Last Modified: 01 Oct 2019 06:38
URI: http://raiith.iith.ac.in/id/eprint/6315
Publisher URL: http://doi.org/10.1016/j.econmod.2019.09.015
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