The growth effect of government expenditure in Jammu & Kashmir
By: Cash, Tasleem Araf
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Material type: 
BookPublisher: Administrative Development: A Journal of HIPA, Shimla Description: 10(1), Jan-Jun, 2023: p.229-254.
In:
Administrative Development: A Journal of HIPA, ShimlaSummary: J&K has been considered as one of the least developed, slow growing and resource deficit states (now UT) in India. Over the last four decades, J&K has witnessed a significant increase in the government expenditure both in absolute amount and as a percentage of state domestic product. The question is does an increase in government expenditure has any impact economic growth. This study empirically investigates the growth effect of aggregate government expenditure and its various components in period 1981 to 2021. At the disintegrated level, the study estimates the growth impact of government expenditure on economic, social and general services. The autoregressive distributed lag (ARDL) or bounds test cointegration technique is used to investigate the long-run relationship between aggregate government expenditure and economic growth and to empirically estimate the short-run and long-run growth effect of total government expenditure. The time series regression model is employed to estimate the growth impact of public expenditure on economic, social and general services. The following are the main findings of the study: (i) the study finds a long-run equilibrium relationship (cointegration) between aggregate government expenditure and economic growth in the erstwhile state of Jammu & Kashmir over the period 1981 to 2021. (ii) The study finds that total public spending exerted a positive and significant impact on the growth rate of output in the erstwhile state of Jammu & Kashmir both in the short and long run. (iii) At the disintegrated level, the study finds that increased government expenditure on social services has a positive and significant impact on economic growth. (iv) The study finds no statistically significant effects of government expenditure on economic and general services on economic growth in Jammu and Kashmir.- Reproduced
https://himachal.nic.in/showfile.php?lang=1&dpt_id=15&level=2&lid=23648&sublinkid=24265
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
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Indian Institute of Public Administration | 10(1), Jan-Jun, 2023: p.229-254 | Available | AR131551 |
J&K has been considered as one of the least developed, slow growing and resource deficit states (now UT) in India. Over the last four decades, J&K has witnessed a significant increase in the government expenditure both in absolute amount and as a percentage of state domestic product. The question is does an increase in government expenditure has any impact economic growth. This study empirically investigates the growth effect of aggregate government expenditure and its various components in period 1981 to 2021. At the disintegrated level, the study estimates the growth impact of government expenditure on economic, social and general services. The autoregressive distributed lag (ARDL) or bounds test cointegration technique is used to investigate the long-run relationship between aggregate government expenditure and economic growth and to empirically estimate the short-run and long-run growth effect of total government expenditure. The time series regression model is employed to estimate the growth impact of public expenditure on economic, social and general services. The following are the main findings of the study: (i) the study finds a long-run equilibrium relationship (cointegration) between aggregate government expenditure and economic growth in the erstwhile state of Jammu & Kashmir over the period 1981 to 2021. (ii) The study finds that total public spending exerted a positive and significant impact on the growth rate of output in the erstwhile state of Jammu & Kashmir both in the short and long run. (iii) At the disintegrated level, the study finds that increased government expenditure on social services has a positive and significant impact on economic growth. (iv) The study finds no statistically significant effects of government expenditure on economic and general services on economic growth in Jammu and Kashmir.- Reproduced
https://himachal.nic.in/showfile.php?lang=1&dpt_id=15&level=2&lid=23648&sublinkid=24265
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