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

Akram, Vaseem and Rath, Badri Narayan (2020) Optimum government size and economic growth in case of Indian states: Evidence from panel threshold model. Economic Modelling, 88. pp. 1-12. ISSN 0264-9993 (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 Creators	ORCiD
Rath, Badri Narayan	http://orcid.org/0000-0001-7211-0952

Item Type:

Article

Additional Information:

The authors would like to thank the editor and anonymous referees for providing valuable suggestions, which improved this paper substantially. This paper is a part of Ph.D. thesis of the first author. The earlier version of this paper was presented at the DEGIT-XXIV conference, University of Southern Denmark, Odense, Denmark, and the first author acknowledges the comments from the participants. The usual disclaimer applies.

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:

15 Nov 2022 06:50