Panel Cointegration between Economic Growth and Non-Tax Revenue among Indian States

2017 ◽  
Vol 4 (2) ◽  
pp. 17
Author(s):  
Alok Pandey ◽  
Annapurna Dixit
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Tax Revenue ◽  
Indian States

scholarly journals Does Causation hold for Panel Data in between SDP and NTR among Indian States?

2014 ◽  
Vol 10 (1) ◽  
pp. 3-15
Author(s):  
Alok Kumar Pandey
Keyword(s):  
Growth Rate ◽  
Panel Data ◽  
Tamil Nadu ◽  
Panel Cointegration ◽  
Uttar Pradesh ◽  
Domestic Product ◽  
Tax Revenue ◽  
Federal System ◽  
Indian States ◽  
Indian Economy

Inadequate revenue sources, uncontrolled growth of current expenditures and failure of central transfers to grow as fast as the states ‘own revenues’ have been the major sources of fiscal imbalance at states level. The existence of nexus in between NTR and SDP can be examined in several ways like growth rates relating to SDP and NTR, proportion of NTR to SDP, several policies relating to accelerate SDP and NTR, etc. So far as inter-state non-tax revenue and state domestic product in India is concerned, limited studies have been done. Present study tries to explore the stationarity and cointigration between Non Tax Revenue and State Domestic Product of twenty major states of Indian federal system in panel data structure for the period 1980-81 to 2011-12.The objectives of the study are: to test the panel stationary of Domestic Production and Non Tax Revenue of the major states of the Indian federal system for the period 1980-81 to 2011-12 in terms of total and growth rate and to test the panel cointegration in between SDP and NTR for the Indian federal system of twenty major states state for the period 1980-81 to 2011-12 in terms of total and growth rate. In the present study data has been taken from Handbook of Statistics on Indian Economy and State Finance for twenty major states; Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Nagaland, Orissa, Punjab, Rajasthan, Tamil Nadu, Tripura and Uttar Pradesh (Handbook of Statistics on Indian Economy 2011-12).In the present study, LLC (2002) and IPS (2003) tests of stationarity have been used. Kao (1999) test of panel cointegration shows that the SDP and NTR and NTR and SDP for the twenty states for the period under study are cointegrable. The results of the study suggest that state domestic product of the states are causing the non tax revenue of the states  and  the non tax revenue of the states  are also causing state domestic product of the states for Indian federal system.

Economic growth, public expenditure on health and IMR in India

2017 ◽  
Vol 44 (12) ◽  
pp. 2002-2018 ◽  
Author(s):  
Subhalaxmi Mohapatra
Keyword(s):  
Economic Growth ◽  
Health Outcomes ◽  
Health Expenditure ◽  
Public Expenditure ◽  
Panel Cointegration ◽  
Time Frame ◽  
Infant Mortality Rate ◽  
Indian States ◽  
Content Type ◽  
Long Run

Purpose The purpose of this paper is to employ a two-step approach to investigate the bi-directional causal linkage between: economic growth (measured by GDP) and public expenditure on health; public expenditure on health and infant mortality rate (IMR); and economic growth and IMR in the Indian context. Design/methodology/approach The present study uses econometric analysis, namely, panel cointegration and Granger causality on 20-year panel data on 16 major Indian states to investigate the causality. Findings The results suggest GDP to Granger cause public expenditure on health both in the short run and in the long run, but public expenditure on health to Granger cause GDP only in the long run. Further, public expenditure on health and economic growth were found to Granger cause IMR in the long run. However, the reverse linkage from IMR to public expenditure on health and/or economic growth was not significant. Research limitations/implications The present study provides support to the existing literature on the effects of economic growth on health expenditure and health outcomes but also raises a question on the time required to realize the same. Practical implications The findings have implications for policy makers on the time frame and application of health expenditure to achieve better results. Originality/value The present study is one of the first to test the tripartite linkage between economic growth, public health expenditure and health outcomes at a state-level analysis.

Fiscal Decentralization and Economic Growth: Evidence from Indian States

2018 ◽  
Vol 7 (1) ◽  
pp. 83-108
Author(s):  
Aadil Ahmad Ganaie ◽  
Sajad Ahmad Bhat ◽  
Bandi Kamaiah ◽  
N. A. Khan
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
The State ◽  
Domestic Product ◽  
Indian States ◽  
Convergence Hypothesis ◽  
State Income ◽  
The Relationship

This study examines the relationship between fiscal decentralization and economic growth in the case of India using panel data for 14 non-specialized states for the period 1981–2014. The results revealed from panel cointegration, and dynamic ordinary least squares (DOLS) framework indicate that spending decentralization has a positive and significant impact on the state domestic product. On the other hand, revenue decentralization has a negative and significant effect on state domestic product. The overall measure of fiscal decentralization is found positively associated with the state income. This study is consistent with the divergence hypothesis in opposite to convergence hypothesis of Oates (1972). JEL: E62, H71, H72

Vicious Cycle of Economic Growth, Pm2.5 and COVID-19 Case of G7 Countries

2020 ◽  
Author(s):  
Rıdvan Karacan
Keyword(s):  
Economic Growth ◽  
Air Pollution ◽  
Particulate Matter ◽  
Fossil Fuels ◽  
Fine Particulate Matter ◽  
Panel Cointegration ◽  
Air Pollutant ◽  
Population Exposure ◽  
Causality Analysis ◽  
G7 Countries

<p>Today, production is carried out depending on fossil fuels. Fossil fuels pollute the air as they contain high levels of carbon. Many studies have been carried out on the economic costs of air pollution. However, in the present study, unlike the former ones, economic growth's relationship with the COVID-19 virus in addition to air pollution was examined. The COVID-19 virus, which was initially reported in Wuhan, China in December 2019 and affected the whole world, has caused many cases and deaths. Researchers have been going on studying how the virus is transmitted. Some of these studies suggest that the number of virus-related cases increases in regions with a high level of air pollution. Based on this fact, it is thought that air pollution will increase the number of COVID-19 cases in G7 Countries where industrial production is widespread. Therefore, the negative aspects of economic growth, which currently depends on fossil fuels, is tried to be revealed. The research was carried out for the period between 2000-2019. Panel cointegration test and panel causality analysis were used for the empirical analysis. Particulate matter known as PM2.5[1] was used as an indicator of air pollution. Consequently, a positive long-term relationship has been identified between PM2.5 and economic growth. This relationship also affects the number of COVID-19 cases.</p><p><br></p><p><br></p><p>[1] "Fine particulate matter (PM2.5) is an air pollutant that poses the greatest risk to health globally, affecting more people than any other pollutant (WHO, 2018). Chronic exposure to PM2.5 considerably increases the risk of respiratory and cardiovascular diseases in particular (WHO, 2018). For these reasons, population exposure to (outdoor or ambient) PM2.5 has been identified as an OECD Green Growth headline indicator" (OECD.Stat).</p>

Export-led Growth Hypothesis in MINT Countries: A Panel Cointegration Analysis

2017 ◽  
Author(s):  
Harun Bal ◽  
Shahanara Basher ◽  
Abdulla Hil Mamun ◽  
Emrah Akça
Keyword(s):  
Economic Growth ◽  
Large Population ◽  
Panel Cointegration ◽  
Secondary Data ◽  
Capital Formation ◽  
Cointegration Analysis ◽  
Promotion Strategy ◽  
Key Factor ◽  
Good Number ◽  
Growth Hypothesis

The contribution of exports to GDP in MINT countries that improve substantially just after their implantation of export promotion strategy in the late 1980s raises the issue of whether the growth in these countries is led by export or not. While a good number of studies have been found investigating whether economic growth is promoted by exports for developing countries having an outstanding share of export in GDP, no study investigating the export-led growth hypothesis for MINT countries has been found until recent times. The main purpose of this study is to fill up the void. The study employs panel cointegration technique with an aim to examine whether the export is the key factor of economic growth for MINT countries employing yearly secondary data that covers the period. Results of the study imply that economic growth of these countries is considerably exports driven. Moreover, there is an indication of improvement of efficiency as exports work along with the rise capital formation. As the employment opportunity of an economy is expanded through capital formation, the emerging MINT countries endowed with large population and favorable demographics are expected to become the major exporters with strong GDP growth by being able to attract adequate foreign investment.

Military Expenditures and Economic Growth in Central and Eastern EU Countries: Evidence from the Post-Cold War Era

2017 ◽  
Vol 25 (3) ◽  
pp. 453-462 ◽  
Author(s):  
Mert Topcu ◽  
İlhan Aras
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Eastern European ◽  
The European Union ◽  
New Members ◽  
Post Cold War ◽  
Long Run ◽  
Short Run ◽  
Military Expenditures ◽  
Eastern European Countries

Although the relationship between military expenditures and economic growth is well documented for the old members of the European Union, empirically little is known for the new members. Thus, the goal of this paper is to investigate the economic impact of military expenditures in Central and Eastern European countries employing panel cointegration and causality methods for the period 1993–2013. Findings indicate that the variables in question do not move together in the long run and the direction of causality in the short run is from economic growth to military expenditures. The implications of the results for international relations are discussed.

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